Select Committee on Public Accounts Minutes of Evidence


Supplementary memorandum submitted by Inland Revenue (PAC 00-01/182)

Q: 32-33


  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 Committee—including the higher figures for the average amounts overpaid—relate to the cases in this sample.

Q:A 116


  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.

Inland Revenue

26 June 2001

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