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Inland Revenue
Mr. Ottaway: To ask the Chancellor of the Exchequer what safeguards the Inland Revenue has in place to ensure that employers' annual packs are delivered before the start of a new tax year. [119339]
Dawn Primarolo: The Inland Revenue includes in the mailing a number of seed packs addressed to its own staff to ensure the completion of the pack and the Royal Mail delivery times.
Royal Mail has its own quality assurance procedures. In addition, the two mailing contractors have strict quality assurance measures in place and the Inland Revenue sends in some of its own staff to check on the assembly and packing of the Annual Packs.
Mr. Ottaway: To ask the Chancellor of the Exchequer what percentage of employers' annual packs due to be sent out by the Inland Revenue for the new tax year had been dispatched by 4 April; and if he will make a statement on how the dispatch has been organised. [119341]
Dawn Primarolo: We understand there is a small problem in the order of 1 per cent. in the despatch of Employers' Annual Packs by 4 April 2000.
The Inland Revenue's IT partner--EDS--supplied Dataforce Group, Northampton, with name, address and reference details of some 1.2 million employers to whom an Annual Pack was to be issued. Dataforce Group personalised address carriers for each employer and enclosed 50 per cent. of these together with the other contents of Annual Packs, the other 50 per cent. being handled by Scotmail Ltd. of Glasgow. The Annual Packs were despatched by second class post. The Inland Revenue has three year contracts with both Dataforce Group and Scotmail, which have at least a further two years to run. These contracts were let in 1999 through the normal contract letting process, overseen by the Inland Revenue Contractors and Procurement Unit.
The Inland Revenue has outsourced the assembly and despatch of its Annual Packs since 1993.
The management and control of the contracts with Dataforce Group, Scotmail and Royal Mail in respect of employer packs, were handled by Inland Revenue, Business and Management Services Division in Shipley, West Yorkshire.
Mr. Ottaway: To ask the Chancellor of the Exchequer what representations he has received about the delivery of Inland Revenue employers' annual packs in 2000 to date; and if he will make a statement. [119340]
Dawn Primarolo: Treasury Ministers receive representations on a wide range of subjects.
19 Apr 2000 : Column: 587W
Tobacco Smuggling
Mr. Wigley: To ask the Chancellor of the Exchequer what plans he has to limit tobacco smuggling via the port of Dover from the continent. [119581]
Dawn Primarolo: The Government recently announced a huge new investment of up to £209 million for HM Customs and Excise to tackle tobacco smuggling. Customs are appointing nearly 1,000 extra staff, a substantial number of whom will be at Dover. In addition, Dover will be included in the new national network of x-ray scanners.
Finance Bill
Mr. Heathcoat-Amory: To ask the Chancellor of the Exchequer which clauses in the Finance Bill were altered prior to its introduction so that their wording conformed to the aims of the Tax Law Rewrite project in respect of plain language. [119423]
Dawn Primarolo [holding answer 17 April 2000]: Draftsmen always seek to write as clearly as possible, subject to the overriding requirements of accuracy and certainty. Where provisions in a Finance Bill amend past Finance Acts--as is often the case--the drafting has to take account of the structure and wording of the existing legislation.
In the case of the Finance Bill 2000, the draftsmen have also been able to take account of the draft legislation published by the Tax Law Rewrite Project and have, where possible, taken the Project's approach into account. Part 9 of Schedule 22 (on Tonnage Tax) is an example of this.
National Insurance Fund
Mr. Flynn: To ask the Chancellor of the Exchequer, pursuant to his answer of 16 February 2000, Official Report, column 609W, what assumptions were made regarding entitlement to inherited SERPS in calculating the estimated balance in the National Insurance Fund at the end of 2001-02. [118935]
Dawn Primarolo [holding answer 17 April 2000]: In calculating the estimated balance in the National Insurance Fund at the end of 2001-02 it was assumed that there would be a 100 per cent. entitlement to inherited SERPS if the spouse died in 2000-01 or 2001-02.
Mr. Flynn: To ask the Chancellor of the Exchequer by how much the National Insurance Fund balance at the end of each year from 2000-01 to 2010-11 is expected to exceed the minimum level recommended by the Government Actuary. [118936]
Dawn Primarolo [holding answer 17 April 2000]: I refer my hon. Friend to the answer I gave to him on 16 February 2000, Official Report, column 608W, detailing estimates for 2000-01 and 2001-02. As I explained then, the figures are based on the difference between forecasts of receipts and expenditure. Small changes in these forecasts could have a substantial impact on the excess. Current projections suggest that existing policy with respect to the National Insurance Fund is consistent with long-term sustainability. However, given the sensitivity of the variables involved, precise long-term forecasts of any actual excess on the Fund reserves would be misleading.
19 Apr 2000 : Column: 588W
Employment Tax Credit
Mr. Matthew Taylor: To ask the Chancellor of the Exchequer what method was used in calculating the cost of an employment tax credit given in paragraph 3.24 of the Treasury paper, "Supporting Work Through an Employment Tax Credit"; how much he estimates will be paid through the adult allowance portion of the working families tax credit in financial year 2000-01; and if he will make a statement. [119053]
Dawn Primarolo [holding answer 17 April 2000]: Detailed design of the parameters for an employment tax credit for people without children will be decided in due course prior to its introduction from 2003. The costing in paragraph 3.24 is based on an illustrative model which extends the adult credit in the Working Families Tax Credit to single people and couples with someone over the age of 25, working 30 or more hours, and with a higher rate for couples than for singles. It was estimated using household and income data from the Family Expenditure Survey and the Family Resources Survey.
It is not possible to provide a breakdown of expenditure in the Working Families Tax Credit by type of credit. The amount of award payable is reduced for families whose incomes are above the threshold, and this reduction is applied to the total value of all credits taken together.
Tax Returns
Mr. Waterson: To ask the Chancellor of the Exchequer how much was spent on issuing incorrect penalties for people who had filled in and sent off their tax returns on time for the 1998-99 tax year. [119737]
Dawn Primarolo: The information requested is not available.
Mr. Waterson: To ask the Chancellor of the Exchequer from which budget the money was found to cover the cost of wrongly-issued penalties for 1998-99 tax returns. [119736]
Dawn Primarolo: The cost of incorrectly issuing around 5,000 penalty notices in respect of 1998-99 tax returns has been met out of the Inland Revenue's budget.
Smuggling
Miss Geraldine Smith: To ask the Chancellor of the Exchequer when x-ray detectors for the use of customs officers will be introduced to combat smuggling. [119742]
Dawn Primarolo: It is expected the first scanner will be operational in November 2000. Additional scanners will be installed in the following months.
Small Businesses
Mr. Burstow: To ask the Chancellor of the Exchequer what proposals he has to stimulate investment in and expansion of small businesses; and what proposals he has to remove disincentives to the retention of profits for the purpose of reinvestment in small unincorporated businesses. [119779]
Dawn Primarolo: The recent Budget 2000 took further steps to boost investment in and expansion of small business. These measures form part of the Government's drive to raise productivity across the economy by encouraging enterprise development.
19 Apr 2000 : Column: 589W
The measures to stimulate investment in small businesses included:
- cuts in capital gains tax to create the most favourable environment Britain has ever seen for encouraging entrepreneurs and investment in small business;
an extra £100 million for a new £1 billion target "umbrella fund" for small scale venture capital investment across the regions over the next three to five years;
a new corporate venturing tax relief, designed to promote investment by larger companies in smaller enterprises, which can play a vital role in providing finance and other benefits to innovative small firms; and
changes to the Enterprise Investment Scheme and Venture Capital Trusts will make the schemes more attractive to investors and boost the availability of venture capital for small higher risk trading companies.
- reductions of the small company corporation tax rate from 23 to 20 per cent., and introduction this year of a new starting rate of corporation tax of 10 per cent. for the first £10,000 of taxable profits, with the benefit tapering away as profits rise to £50,000;
a new R&D tax credit designed to encourage investment in R&D by small and medium-sized companies;
extending permanent enhanced first year capital allowances (at 40 per cent.) for small and medium-sized firms to encourage investment in plant and machinery;
introducing 100 per cent. capital allowances for small enterprises investing in IT equipment over the next three years.
19 Apr 2000 : Column: 590W
businesses in the Budget 2000 combine to boost the post-tax revenues of small unincorporated businesses, enabling them to invest more in their future growth.
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