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Value Added Tax

Volume 974: debated on Monday 19 November 1979

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asked the Chancellor of the Exchequer whether a net loss is sustained by Mer Majesty's Customs and Excise in the collection of value added tax from businesses with an annual turnover equivalent to, or slightly in excess of, the present threshold of £10,000 and if, in order to keep in line with the monetary inflation that has recurred since value added tax was first introduced, he will now give consideration to raising the threshold to an annual turnover figure of £25,000.

No. The level of the VAT registration limit is kept under continuous review.I should point out that there is no net loss in the circumstances postulated by my hon. Friend; and that, raised in line with the retail prices index, the registration limit would be no more than £12,650 taxable turnover a year.

asked the Chancellor of the Exchequer (1) whether a net loss results to Her Majesty's Customs and Excise in the collection of value added tax from businesses with an annual turnover of between £15,000 and £20,000; and, if so, what that net loss is estimated to be; (2) whether a net loss results to Her Majesty's Customs and Excise in the collection of value added tax from businesses with an annual turnover of between £10,000 and £15,000; and, if so, what that net loss is estimated to be.

asked the Chancellor of the Exchequer how many cases are heard annually by the value added tax tribunals; how many members sit on these tribunals; and what is their total annual cost.

[pursuant to his reply, 16 November 1979]: Most appeals to the VAT tribunals are settled without a hearing. In the year to 31 March 1979 733 appeals were lodged, while 166 received a substantive hearing. There have also been a number of interlocutory hearings. Figures for earlier years are contained in the published annual reports of the commissioners of Her Majesty's Customs and Excise, copies of which are in the Library of the House.The VAT tribunals have a full-time president, three full-time salaried chairmen and one part-time salaried chairman; and they have 10 other part-time chairmen and a panel of lay members, who sit ad hoc and are remunerated on a daily basis.The tribunals' cost in salaries and general administrative expenditure was £267,000 in 1978–9.