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Valuation Office Agency

Mrs. Spelman: To ask the Chancellor of the Exchequer pursuant to the answer of 26 January 2007, Official Report, column 2134W, on the Valuation Office Agency (VOA), if he will place in the Library copies of staff magazines produced by the VOA since the January 2006 edition. [142401]

Dawn Primarolo: I refer the hon. Member to the answer of 8 January 2007, Official Report, column 432W, which confirmed that a copy of the Valuation Office Agency’s staff magazine for June 2006 was placed in the Library. Two subsequent editions have now been placed in the Library.

Michael Gove: To ask the Chancellor of the Exchequer if he will place in the Library copies of the Valuation Office Agency’s Audit Committee minutes from the last 12 months. [143661]

Dawn Primarolo: The meeting summaries, which will be published on the Valuation Office Agency’s (VOA) website—www.voa.gov.uk—;have been placed in the Library.

Valuation Office: Databases

Mr. Pickles: To ask the Chancellor of the Exchequer what the Valuation Office Agency's target is for increasing the number of photographs of (a) domestic and (b) non-domestic properties held on its electronic database. [145223]

Dawn Primarolo: The VOA has no target to increase the number of photographs on the electronic database.

Valuation Office: Manpower

Mr. Pickles: To ask the Chancellor of the Exchequer pursuant to the answer of 27 March 2007, Official Report, column 1513W, on the Valuation Office: manpower, what the figure was in each year from 1990 to 1999. [145345]

Dawn Primarolo: The numbers of full-time equivalent staff employed by the agency as at the end of March each year are shown in the following table:

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	Number of full-time equivalent staff
1997	4,301
1998	4,110
1999	4,072

The VOA does not retain records prior to 1997. Therefore we are unable to produce Staff In Post reports before this year.

Valuation Office: Training

Mr. Pickles: To ask the Chancellor of the Exchequer how much the Valuation Office Agency spent on media training in each year since 2001. [145224]

Dawn Primarolo: The Valuation Office Agency spent £20,000 in 2004 on media training.

Valuation Office: Visits Abroad

Mr. Pickles: To ask the Chancellor of the Exchequer if he will list the foreign countries which representatives of the Valuation Office Agency have visited on official business since 1 January. [145234]

Dawn Primarolo: Since 1 January 2007, VOA staff visited Australia, Canada, New Zealand, USA and Lithuania on official business.

VAT

Kelvin Hopkins: To ask the Chancellor of the Exchequer what his estimate is of total uncollected VAT revenues in the last year for which figures are available. [126242]

Dawn Primarolo: Recoverable VAT revenue uncollected at the end of financial year 2005-06 was estimated at £1.1 billion.

This figure is a snapshot of the amount unpaid at the end of the financial year and fluctuates throughout the year.

This debt is being actively managed and will be subject to recovery action, time to pay arrangements, legal proceedings and insolvency action.

VAT: Home Information Packs

Mr. Pickles: To ask the Chancellor of the Exchequer (1) what the expected (a) gross and (b) net revenue is from VAT on (i) home information packs (HIPs), (ii) the home condition report element of a HIP and (iii) energy performance certificates; [145228]

(2) whether VAT will be payable on the entire contents of a home information pack. [145229]

Dawn Primarolo: The extent to which VAT will be payable on the costs incurred by a prospective house seller in compiling a home information pack will depend on the contents of each individual pack, and on how it is compiled.

HM Revenue and Customs does not have the information required to make these specific estimates.

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VAT: Registration

Mr. Truswell: To ask the Chancellor of the Exchequer what assessment he has made of the effect on businesses of the time taken to approve VAT applications; what steps he intends to take to reduce this timescale; and if he will make a statement. [144729]

Dawn Primarolo: It is right that HM Revenue and Customs take steps to prevent abuse of the VAT system—including by those who seek to register for fraudulent purposes. While these steps aim to target abuse, HMRC recognise that unacceptable delays for legitimate businesses should be minimised. HMRC are introducing new working practices and processes designed to improve the service.

Mr. Gauke: To ask the Chancellor of the Exchequer pursuant to the answer of 18 June 2007, Official Report, column 1500W, on VAT: registration, how many VAT applications not processed within 21 days of receipt in March 2007 related to (a) mobile telephones, (b) other electrical equipment and (c) other activities. [145175]

Dawn Primarolo: HM Revenue and Customs does not record processing times for businesses involved specifically in mobile phones or electrical equipment.

Mr. Gauke: To ask the Chancellor of the Exchequer pursuant to the answer of 18 June 2007, Official Report, column 1500W, on VAT: registration, how many such complaints were from companies seeking VAT registration to conduct business activities relating to (a) mobile telephones, (b) other electrical equipment and (c) other activities. [145177]

Dawn Primarolo: HM Revenue and Customs does not record details of the trading activities of businesses that made complaints.

VAT: Solar Power

Stephen Williams: To ask the Chancellor of the Exchequer how much VAT was raised from the sale of solar panels for the latest year for which figures are available. [145884]

Dawn Primarolo: HM Revenue and Customs does not collect data on VAT from individual goods and services.

Welfare Tax Credits

Mr. Laws: To ask the Chancellor of the Exchequer what estimate he has made of what the expenditure on (a) tax credits and (b) child benefit will be in 2006-07; and on what assumptions including take up rates this figure is based. [144554]

Dawn Primarolo: Provisional estimates of tax credit and child benefit expenditure in 2006-07 is published in Table 1.3b “Monthly and quarterly Child and Working Tax Credits and Child Benefit net payments”, which is available on the HMRC website at:

http://www.hmrc.gov.uk/stats/tax_receipts/menu.htm

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These estimates may be subject to revision when definitive annual totals are released with the 2007 HMRC Trust Statement.

No assumptions are made in producing these statistics.

Mr. Laws: To ask the Chancellor of the Exchequer what backlogs there are in HM Revenue and Customs offices of unprocessed (a) tax credit claim forms and (b) declaration forms; and if he will make a statement. [144709]

Dawn Primarolo: HM Revenue and Customs aims to deal with 86 per cent. of new claims, renewals and changes of circumstances within five working days and 95 per cent. in 30 working days.

The latest figures that are available show there are no backlogs of unprocessed new claims or 2006-07 annual declaration forms.

Mr. Laws: To ask the Chancellor of the Exchequer (1) how many of the Parliamentary Ombudsman's recommendations for reform of the tax credit system were fully implemented as at 31 May; and if he will make a statement; [144710]

(2) what steps are being taken to bring to the attention of tax credit claimants their potential entitlement to additional payments due to in-year restrictions on recovery; [144740]

(3) what action has been taken to implement a period of notice before recovery of a tax credit overpayment; what period of notice is to be given; and if he will make a statement; [144741]

(4) what action had been taken as at 31 May 2007 to ensure that all claimants who are asked to repay overpaid tax credits are automatically made aware of the reasons for any overpayment; and if he will make a statement; [144742]

(5) why the Government have not implemented the Parliamentary Ombudsman's third recommendation on tax credits in relation to displaying appeal rights on overpayments on the award notice; and if he will make a statement; [144743]

(6) what action his Department takes to notify tax credit claimants of the circumstances in which they can have recovery of overpaid tax credits waived; and if he will make a statement; [144744]

(7) pursuant to the debate of 15 March 2007, Official Report, column 181WH, on tax credits, what the evidential basis was for the statement by the Paymaster General that the vast majority of the Parliamentary Ombudsman's recommendations on tax credits had been implemented; and if he will make a statement. [144750]

Dawn Primarolo: Progress against each of the ombudsman’s recommendations of her report, “Tax Credits: Putting Things Right (HC 124), can be seen in the following table:

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	Summary of Recommendation	Progress
1	Steps to ensure staff recognise the situations where interim payments of tax credits are appropriate.	Implemented.
		Guidance sent out 2005.
2	The Revenue should not seek to recover until it has come to a decision on whether it should be recovered under COP 26 (the ‘pause’).	Work in progress.
		Suspension of recovery of disputed overpayments became possible from November 2005. From November 2006 this became fully automatic.
		Government accepted the case in principle for a period of notice before recovery of an overpayment begins.
3	On the ‘payments page’ of an award notice, customers should be alerted to the fact that recovery can be disputed under COP 26.	Implemented.
		Clearly displayed in the one-page notes accompanying the award notice.
4	Recovery should be at the same rate as those for previous year overpayments.	Implemented.
		Part of package of measures announced at PBR 2005.
5	Steps to ensure that staff who have contact with tax credit customers are alert to the circumstances when Additional Tax Credits (ATCs) might be appropriate.	Implemented.
		Guidance sent out 2005.
		Special arrangements from January to ensure in-year restriction is available without claimants having to ask for this.
6	Where in-year recovery of excess tax credits is justified, the Revenue should take steps to pay ATCs automatically to families in receipt of income support and income-based jobseeker’s allowance.	Implemented.
		This recommendation has been overtaken by the announcement in PBR 2005 to align cross and in-year recovery rates. This will occur for all in-year recoveries, whether or not the claimant is in receipt of IS or I/B JSA.
7	Details of the availability of ATCs should be printed prominently on the ‘payments’ page of an award notice and the guidance notes.	Implemented.
		More prominent on both these documents. Overtaken by the announcement in PBR 2005 to align cross and in-year recovery rates.
8	Overpaid customers to be sent a letter outlining:	Implemented.
	The total amount they owe;	Revised award notice explains in more detail how the award is made up, the payment schedule and details of how payments are affected by recovery action. The guidance notes give greater prominence to overpayments and recovery, the availability of COP26, waiver and additional payments.
	The reasons why the overpayment occurred and the date or dates when it happened; and	A full Playback introduced in November 2006, as part of the latest computer release, and will mean that a claimant’s finalisation/renewals notice from April 2007 will contain information on their award throughout the previous tax year. This will help with explaining “why did this overpayment occur”.
	The repayment arrangements which will apply in their case.
	The letter to enclose a copy of COP 26 and draw particular attention to the circumstances when recovery can be waived and the availability of ATCs in cases of hardship.
9	Whenever a Revenue mistake is identified which has led to an overpayment, the customer should be immediately notified of exactly what has happened and informed of the circumstances when recovery can be waived.	Implemented.
		When an IT system problem is identified which has led to an overpayment, HMRC will contact those affected.
		Award notice contains the amount and how it will be recovered on the notice. The accompanying guidance notes tell claimants that HMRC’s approach to overpayments is outlined in COP 26.
		HMRC cannot always identify where a mistake has been made as it often needs individual customer contact.
10	Write off all overpayments caused by official error which occurred during 2003-04 and 2004.	Not accepted.
		The Government have to balance duty of care to tax credit claimants with their duty to all taxpayers and the public purse.
11	Statutory test for recovery of overpayments consistent with the test that is currently applied to social security benefits, with a right of appeal to an independent tribunal.	An alternative approach is being piloted.
		Claimants can complain if they disagree with the decision or matters are not resolved to their satisfaction.
		HMRC are planning with the adjudicator to provide a fast track independent review for disputed overpayments. Pilot will start in the next few months to test arrangements.
12	The Revenue should consider the way it organises delivery of tax credits in order to deliver a better, more complete service to the customers it now serves. A different model is needed in complex cases and where something has gone wrong. More sustained and informed communication with customers about their case is essential.	Implemented but will always be subject to ongoing work.
		Special team set up in the Tax Credits Office (TCO) to deal with more complex cases (known as “Group 33”) who adopt a whole case approach.
		TCO have reviewed their complaints processes and made a number of changes. In particular to have a named caseworker who will take ownership of the complaint until it is resolved.
		More generally we have taken a more radical long-term look at the way we delivery tax credits. This now forms part of the Department’s Transformation programme.

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