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Computers
Mr. Ian Bruce: To ask the Secretary of State for Defence what effect the announcement by 3COM that they are to quit the high-end networking market will have on his Department's existing and planned computer systems. [R] [117623]
Dr. Moonie [holding answer 4 April 2000]: None.
TREASURY
Self-employment (Bogus Claims)
Mr. Cohen: To ask the Chancellor of the Exchequer what action (a) he is taking and (b) he plans to take to prevent bogus claims of self-employment, with particular reference to the construction industry; and what estimate he has made of the loss of revenue as a result of such claims. [116509]
Dawn Primarolo: Whether an individual is employed or self-employed depends upon the terms of the contract under which they are engaged. This is true for all industries including the construction industry.
The Inland Revenue is, however, aware that workers in the construction industry in particular have been incorrectly categorised in the past. Following consultation with the industry, the Revenue increased its compliance activity in this area to ensure that there was a consistency of treatment across the industry. The Revenue continues to police the status of workers in all areas including those in construction to ensure that the rules are properly understood.
The Inland Revenue has no information that can accurately provide an estimate of revenue, which may have been lost in cases where the contract has not been categorised correctly.
Mr. Gordon Prentice:
To ask the Chancellor of the Exchequer what policy consideration led him to raise the threshold for earnings liable to 40 per cent. income tax by an amount less than the average growth of earnings; and if he will make a statement. [116879]
Dawn Primarolo:
In 2000-01, the basic rate limit, above which the higher rate of income tax of 40 per cent. is payable on earnings, rises to £28,400 in accordance
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with the provisions of Section 1 of the Income and Corporation Taxes Act 1988. The legislation provides that, unless Parliament determines otherwise, the basic rate limit for a year should be increased in line with the rise in the Retail Prices Index in the year ended in September in the previous year of assessment, rounded up to the nearest £100.
Mr. Wigley:
To ask the Chancellor of the Exchequer what is his estimate of the effect of Budget changes including the (a) abolition of the married person's tax allowance, (b) decrease in the standard rate of income tax, (c) establishment of the 10 per cent. rate of income tax and (d) indexation of tax allowances on a married woman earning £14,000 a year, who is the sole income earner for a family of a husband and two children, and who has no more than the basic tax allowances. [116831]
Dawn Primarolo:
This Government have introduced a range of measures to make work pay and to improve work incentives, including the 10p starting rate of income tax, basic rate cut, National Minimum Wage, National Insurance Contributions reform and the Working Families Tax Credit.
The income tax and National Insurance Contributions liability for a married woman earning £14,000 a year, who is the sole income earner for a family of a husband and two children under 11 would be £2,728 less in 2001-02 compared with the 1998-1999 regime with all of the allowances and limits increased in line with inflation. That is over £52 per week better off.
For 1998-99 it has been assumed that the woman claims the married couple's allowance and family credit.
The family would also gain from Child Benefit which increased by £179.40 per year more than inflation.
Mr. Heathcoat-Amory:
To ask the Chancellor of the Exchequer if he will place in the Library a copy with excisions of matters of operational sensitivity to Her Majesty's Customs and Excise, of Martin Taylor's report on the Government's strategy to combat tobacco smuggling and any accompanying correspondence. [117680]
Mrs. Lait:
To ask the Chancellor of the Exchequer if he will place in the Library a copy, with appropriate excisions of matters of operational sensitivity to Her Majesty's Customs and Excise, of the Taylor report on the Government's strategy to combat tobacco smuggling and the accompanying correspondence. [117544]
Dawn Primarolo:
No. Martin Taylor's advice to the Chancellor was personal and confidential. It would therefore not be appropriate to disclose his advice. However his recommendations on how to tackle tobacco smuggling were summarised in the Government paper "Tackling tobacco smuggling". A copy of this paper has been placed in the Library.
Mrs. Lait:
To ask the Chancellor of the Exchequer if Martin Taylor's report on the Government's strategy to combat tobacco smuggling has been made available to the senior officers of HM Customs and Excise at policy and operational levels who are responsible for the control of tobacco smuggling. [117501]
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Dawn Primarolo:
Senior Customs and Excise officials are aware of the advice Martin Taylor gave to the Chancellor on how to combat tobacco smuggling.
Mr. William Ross:
To ask the Chancellor of the Exchequer what is his estimate of the loss to public revenues in each of the last three years and the current year to end of March consequent on the smuggling of (a) petrol, and (b) other fuel oils from the Irish Republic into Northern Ireland. [117677]
Dawn Primarolo:
I refer the hon. Member to the answer I gave the hon. Member for Lewes (Mr. Baker) on 20 March 2000, Official Report, column 442W.
Angela Smith:
To ask the Chancellor of the Exchequer if he will grant tax relief on the costs of conversion of minibuses and coaches to allow for wheelchair and disabled access. [117639]
Dawn Primarolo:
The capital costs of providing wheelchair and disabled access to minibuses and coaches will normally qualify for capital allowances at 25 per cent. a year on the reducing balancing basis. Small and medium-sized businesses will qualify for first year capital allowances at 40 per cent. on these costs. This is increased to 100 per cent. if the costs are incurred between 12 May 1998 and 11 May 2002 by such businesses on the conversion of minibuses and coaches for use primarily in Northern Ireland.
Mr. Loughton:
To ask the Chancellor of the Exchequer what assessment he has made of the impact on people who will be of pensionable age in the next five years of the ending of the married persons tax allowance. [115896]
Dawn Primarolo
[holding answer 3 April 2000]: The Government will be spending an additional £6.5 billion on pensioners over the course of this Parliament.
Pensioners who are taxpayers can benefit from the 10p starting rate of income tax on pensions and savings income and from the cut in the basic rate to 22p in the pound from April. Those aged 65 or more saw the age- related income tax personal allowances for 1999-2000 rise by up to £200 more than required by statutory indexation. In 2000-01, the allowances will rise to £5,790 for someone aged 65 to 74 and to £6,050 for someone aged 75 or more.
The majority of pensioners have no income tax to pay. All households with someone aged 60 or more will benefit from the increase in the winter fuel allowance to £150, an increase of £50 on the fivefold increase to £100 announced in the Chancellor's 1999 Budget. The poorest pensioners will gain from the minimum income guarantee which will stand at £121.95 per week for a pensioner couple under 75. Pensioners aged 75 or more will also benefit from free Television Licences from this autumn.
Mr. Robertson:
To ask the Chancellor of the Exchequer if he will assess the benefits of introducing tax incentives
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for new companies which operate below the threshold of turnover above which they would receive exemption certificates; and if he will make a statement. [117338]
Dawn Primarolo
[holding answer 3 April 2000]: There are no plans to introduce tax incentives for companies (or other businesses) that carry out construction operations but whose construction turnover is insufficient to enable them to pass the turnover test for the new Construction Industry Scheme.
However, a Joint Working Group comprising officials from the Inland Revenue, the Department of the Environment, Transport and the Regions, and representatives from the Construction Industry, is being set up to review the scheme. This group will be considering the introduction of in-year repayments for companies that do not pass the turnover test, which will improve the cash flow position of those companies that receive payments under the scheme after deductions on account of tax and NIC.
Mr. Ruane:
To ask the Chancellor of the Exchequer what assessment he has made of the effect of the smuggling of alcohol and tobacco on the retail sector, with particular reference to newsagents. [117551]
Dawn Primarolo
[holding answer 3 April 2000]: The Government recognise that smuggling damages legitimate businesses. They are responding with a strategy worth up to £209 million, which aims to put tobacco smuggling into decline within three years. This is described in detail in "Tackling Tobacco Smuggling". Constraining the growth of smuggling will help retailers by preventing them losing market share to criminals.
Mr. Ruane:
To ask the Chancellor of the Exchequer (1) if he will estimate the amounts of alcohol and tobacco smuggled into the UK for each of the past 10 years; and what estimate he has made for the next three years; [117552]
Dawn Primarolo
[holding answers 3 April 2000]: I refer my hon. Friend to the "Tackling Tobacco Smuggling" paper published on 22 March 2000 by HM Customs and Excise and HM Treasury; to my answer given on 26 November 1999, Official Report, columns 254-55W; and to the technical report on cross- Channel smuggling placed in the Library of the House on 19 September 1998.
Mr. Ruane:
To ask the Chancellor of the Exchequer what the current penalties are for smuggling tobacco and alcohol; and what plans he has to revise them. [117550]
Dawn Primarolo:
Customs have a range of penalties available including:
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Mr. Ruane:
To ask the Chancellor of the Exchequer how many successful prosecutions there were for smuggling (a) tobacco products and (b) alcohol in each of the past 10 years. [117548]
Dawn Primarolo
[holding answer 3 April 2000]: I regret that records are not kept in this format.
(2) what was the estimated tax lost to the Treasury in smuggled (a) cigarettes, (b) rolling tobacco and (c) alcohol in each of the past 10 years; and if he will make a statement. [117547]
Seizure of the goods and any vehicle carrying them;
Payment of a compounded penalty;
Prosecution in Court, including disqualification from driving, revocation of a liquor licence or haulier's licence, removal of lottery terminal, compensation or confiscation orders.
The penalty regime is kept under constant review.
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