Supplementary memorandum submitted by
Inland Revenue (PAC 00-01/182)
The Committee asked how many PAYE taxpayers
have had their tax codes adjusted because annually they have a
certain amount of other income.
Whilst we do have records of the total number
of PAYE coding notices which are changed each year, our records
do not identify the reasons why the codes need to be changed.
Codes are amended for reasons other than the existence of other
income, for example changes in Benefits in Kind.
Q: A 82
The Committee asked about amounts of tax estimated
to have been overpaid in cases cleared automatically for 1997-98.
The Inland Revenue's figures, on which the NAO
report was based indicated that in 85 per cent of the cases cleared
automatically the right amount of tax had been paid. Of the other
15 per cent, it was estimated that 148,000 individuals had overpaid
by a total of £22 million and 12,000 had underpaid by a total
of £4 million. The average amount overpaid was £148.
Subsequently the Inland Revenue carried out
some research in a local office to examine ways of improving work
on open cases generally. As part of that work we looked at some
of the cases cleared automatically of 1997-98. Although these
cases did not provide a statistically valid sample they tended
to support the overall figures. (In around 87 per cent of the
cases looked at in the local office the right amount of tax had
been paid.) Other figures discussed by the Committeeincluding
the higher figures for the average amounts overpaidrelate
to the cases in this sample.
The Committee asked for the number of compliance
reviews undertaken within the construction industry.
As indicated at paragraph 121, the Department
has commenced around 8,500 compliance reviews since the start
of the Construction Industry Scheme in August 1999. The Revenue's
Business Support Teams are also available to help employers meet
and understand their obligations.
26 June 2001