Mr. Andrew Smith: To ask the Chancellor of the Exchequer what is the latest estimate of the overall impact on business of theintroduction of tax self-assessment, disaggregated into (a) estimated extra costs and (b) estimated savings. [8210]Mr. Jack: [holding answer 11 January 1996]:Self-assessment is a major modernisation of the system of tax administration which will provide a permanent reduction for taxpayersin the costs of complying with their obligations. The changes will particularly benefit self-employed people. A compliance costassessment detailing the estimates leading to this conclusion was published on 28 November 1994. A copy is available in the HouseLibrary.It contains the following summary figures:Self-assessment generates a recurrent compliance net saving for businesses, mainly the self-employed, of some £125 to £250 million ayear.This figure takes account of recurrent costs to employers who provide benefits to employees are estimated at £20 to £30 million ayear; some but not all of these employers will benefit from compliance savings by being self-employed.Initial costs of adapting to the new system are estimated at £100 to £200 million.The typical small self-employed business which does not provide benefits in kind to employees could expect recurrent savings of £30to £60 a year, more than offsetting the non-recurrent cost in a single year.The overall annual savings are net of the costs quoted by the Opposition in the press recently.