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1 Feb 2010 : Column 106W—continued
Taxation: Holiday Accommodation
Mr. Sanders: To ask the Chancellor of the Exchequer (1) what estimate has been made of the proportion of UK taxpayers with income from furnished holiday lettings in the UK who reside in the South West; [309687]
(2) how many UK taxpayers obtained furnished holiday letting revenue from properties in the European Economic Area in 2008-09. [309688]
Mr. Timms: HM Revenue and Customs' (HMRC) administrative systems do not record the location of properties let under furnished holiday lettings rules and whether they are situated in the UK or the European Economic area. It is estimated that 20 per cent. of UK taxpayers with income from furnished holiday lettings (in the UK or the European Economic Area) have a correspondence address in the South West.
Taxation: Self-assessment
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer (1) how many individuals have been switched out of self-assessment in (a) 2006, (b) 2007, (c) 2008 and (d) 2009; [312155]
(2) what criteria are used to determine whether a self-assessment case requires manual processing;. [312332]
(3) what percentage of self-assessment forms were (a) incomplete and (b) completed incorrectly in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009; [312335]
(4) what the five most common errors made by individuals completing self-assessment forms were in (a) 2006, (b) 2007, (c) 2008 and (d) 2009. [312406]
Mr. Timms: Following a review of self-assessment in April 2004 HM Revenue and Customs (HMRC) introduced revised criteria for completion of self-assessment tax returns. As a result, many customers with straightforward tax affairs were no longer required to complete an annual tax return. The number of individuals who have automatically been taken out of self-assessment is provided in the following table.
| Number of individuals taken out of self-assessment | |
Manual processing is required where a self-assessment main tax return is filed on paper. Returns filed electronically do not require manual processing and short tax returns filed on paper are subject to automated data capture.
A self-assessment tax return can be regarded as incomplete for a number of reasons, for example: no signature or missing supplementary pages. HMRC will send these back to the taxpayer for completion. HMRC will correct obvious errors made by the taxpayer; for example:
Where the taxpayer transposes figures;
Puts a decimal point in the wrong place;
Makes arithmetical errors; or
Incorrectly records national insurance benefits.
Information on the number of incomplete or incorrect returns is available only at disproportionate cost, as the data are not centrally held by HMRC's systems.
Based on the sampling undertaken as part of the Department's monthly quality monitoring exercise, the five most common errors made by individuals completing self-assessment forms were:
1. declare the correct amount of national insurance benefits on the return;
2. complete all the relevant boxes on the trust page;
3. include the amount of underpayment from an earlier year included in the PAYE code for a later year;
4. claim fixed rate expenses; and
5. include details of in-year repayments already received.
1. declare the correct amount of national insurance benefits on the return;
2. complete all the relevant boxes on the trust page;
3. include the amount of underpayment from an earlier year included in the PAYE code for a later year;
4. correctly complete boxes on the return; and
5. include details of in year repayments already received.
1. declare the correct amount of national insurance benefits on the return;
2. include the amount of underpayment from an earlier year included in the PAYE code for the return year;
3. claim fixed rate expenses;
4. include details of in year repayments already received; and
5. include the amount of underpayment from an earlier year included in the PAYE code for a later year.
1. declare the correct amount of national insurance benefits on the return;
2. include the amount of underpayment from an earlier year included in the PAYE code for the return year;
3. include the amount of underpayment from an earlier year included in the PAYE code for a later year;
4. claim fixed rate expenses; and
5. complete the tax paid on pension income on the SA return.
Taxation: Self-assessment and PAYE
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer (1) how many people paying tax through (a) self-assessment and (b) pay-as-you-earn were (i) overcharged and (ii) undercharged in (A) 2006, (B) 2007, (C) 2008 and (D) 2009; and what the difference was between the amount charged and the amount owed in each case in each such year; [312328]
(2) how many people were affected by errors in the (a) self-assessment and (b) pay-as-you-earn system in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009; [312329]
(3) how many (a) pay-as-you-earn and (b) self-assessment cases there were in which the tax remitted did not match the end-of-year information in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009; [312330]
(4) how many coding errors there were in respect of the (a) self-assessment and (b) pay-as-you-earn system in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009. [312407]
Mr. Timms: The information requested is available only at disproportionate cost, as the data are not centrally captured by HM Revenue and Customs' systems.
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer (1) how many of the self-assessment forms filed in (a) September and (b) January were processed manually in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009; [313941]
(2) what recent estimate he has made of the cost to his Department of processing self-assessment forms filed in (a) September and (b) January; [313942]
(3) how many self-assessment forms were filed in respect of the (a) September and (b) January deadline in (i) 2008 and (ii) 2009. [313974]
Mr. Timms: The information requested is not available. HM Revenue and Customs (HMRC) do not hold data for the number of self-assessment tax returns processed manually by whether they were received in September or January. The total number of self-assessment returns processed manually is provided in the following table.
| Tax return year | Self-assessment (individuals) |
No such estimate has been made.
In 2008 the self-assessments filing dates were changed, from 30 September and 31 January, to 31 October for paper returns and 31 January for online returns. The information requested is provided in the following table.
| Tax return | |
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer (1) what information his Department makes available to PAYE taxpayers on their annual tax calculation; [313958]
(2) how many P46 codes were used in (a) 2006, (b) 2007, (c) 2008 and (d) 2009; [313965]
(3) how many (a) PAYE and (b) self-assessment taxpayers challenged or appealed the amount they were charged for income tax in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009. [313967]
Mr. Timms: HM Revenue and Customs do not issue annual tax calculations to pay-as-you-earn (PAYE) taxpayers. PAYE customers who also meet the self-assessment (SA) criteria are required to complete an annual SA tax return. Further information on income tax self-assessment can be found at:
The information requested is not available, as HMRC's systems do not record when employers operate tax codes based on the completion of a P46 form, or all the instances when a taxpayer may query the amount of tax they pay.
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer (1) how many tax code changes for benefits in kind are processed automatically following the receipt of P11Ds; [313959]
(2) how many P11Ds were processed (a) manually and (b) automatically in (i) 2006, (ii) 2007, (iii) 2008 and (iv) 2009; [313961]
(3) what the average cost of processing a P11D (a) automatically and (b) manually was in the latest period for which figures are available; [313962]
(4) what the volume is of the backlog of P11Ds waiting to be manually processed; [313963]
(5) what the average income was of taxpayers who were (a) overcharged and (b) undercharged income tax in the latest year for which figures are available. [313969]
Mr. Timms: The information requested is provided in the following table.
| P11Ds | ||||
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | |
| (1 )Figures for the numbers of P11Ds automatically coded were only produced for 2007-08 to test HMRC's system. | ||||
Mr. Liddell-Grainger: To ask the Chancellor of the Exchequer what research has been commissioned or undertaken by HM Revenue and Customs since 2001-02 on (a) the number of self assessment taxpayers who under declare liability and (b) the levels of tax revenues which go undeclared; and if he will make a statement. [313964]
Mr. Timms: HM Revenue and Customs (HMRC) published 'Measuring Tax Gaps 2009' alongside the 2009 Pre-Budget Report, available at:
an estimate of the proportion of those receiving an Income Tax Self Assessment tax return (individuals, partnerships and trusts) who had understated their tax liability for each year from 1999-20000 to 2004-05 and the levels of under declaration; and
an estimate of the proportion of small and medium-sized companies receiving a Corporation Tax Self Assessment return who had understated their tax liability for the financial years 2001-04, and the levels of under declaration.
At the end of 2008-09 18,211 P11Ds were outstanding, which HM Revenue and Customs have been unable to match to an individual record.
The information requested is available only at disproportionate cost, as the data are not centrally captured by HM Revenue and Customs systems
VAT
David T.C. Davies: To ask the Chancellor of the Exchequer what value added tax rate applies to items purchased before 1 January 2010 and delivered after 1 January 2010. [309029]
Mr. Timms: Items subject to the standard rate of VAT which were paid for before 1 January 2010 and delivered on or after that date will normally be liable to VAT at 15 per cent. However, anti-forestalling legislation was in place to prevent artificial avoidance of the rate reversion.
Mr. Gregory Campbell: To ask the Chancellor of the Exchequer what assessment he has made of the likely effect on the economy between 1 January and 31 March 2010 of the return of the level of value added tax to 17.5 per cent. [314420]
Mr. Timms: The annual rate of consumer price inflation is expected to rise in January, partly due to the pre-announced reversal of the cut in the VAT rate from 15 per cent. back to 17.5 per cent.
The 2009 pre-Budget report forecast assumes that businesses will smooth the pass-through of the reversal of the VAT rate cut, with inflation peaking in early 2010. It is assumed that households will bring forward some consumption from 2010 to 2009 as a result of the lower relative prices associated with the reversion of the temporary cut in the standard rate of VAT.
Consumer spending is forecast to grow over 2010 as a whole. The Government will set out their latest assessment of economic prospects in the Budget as usual.
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