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Tax Returns

Volume 456: debated on Tuesday 6 February 2007

To ask the Chancellor of the Exchequer what the estimated cost is of filling out a tax return; and what estimate he has made of (a) how many people pay accountants to do this for them and (b) how much they pay for this service. (118716)

No data are held on the financial cost of completing a self-assessment tax return. The latest data available (2003) on the time taken to complete a tax return is as follows:

Hours unrepresented

Hours represented

Employees

2.25

2.02

Self-employed

3.02

2.27

The majority of self-assessment customers are represented by agents who may range from professional tax agents to helpful relatives.

2006-07

Agent

No agent

Total

Individual

4,521,689

4,012,395

8,534,084

Partnership

308,318

227,256

535,574

Trust

93,872

204,787

298,659

Total

4,923,879

4,444,438

9,368,317

No data are held on the fees paid by customers to professional agents for the completion of self-assessment tax returns.

To ask the Chancellor of the Exchequer how many people who submitted tax returns in the last period for which figures are available earned (a) under £20,000, (b) under £32,500, (c) under £50,000, (d) under £75,000, (e) under £100,000, (f) under £150,000 and (g) over £250,000. (118717)

Estimates for the number of individuals that submitted tax returns for 2004-05 are given in the following table.

Range of earned income

Number of individuals (thousand)

No earned income

765

£1 to £4,744

1,550

£4,745 to £19,999

3,580

£20,000 to £32,499

1,250

£32,500 to £49,999

859

£50,000 to £74,999

453

£75,000 to £99,999

183

£100,000 to £149,999

170

£150,000 to £249,999

92

£250,000 and over

59

All ranges

8,960

Notes:

1. These estimates are from the Survey of Personal Incomes 2004-05 and are the latest available.

2. Earned income is defined as income from employment, self-employment and pensions.

3. Numbers are given to three significant figures and may not sum to the total due to rounding.

To ask the Chancellor of the Exchequer what the average time was between the receipt of a tax return and the commencement of an HM Revenue and Customs inquiry in the latest period for which figures are available. (119413)

HM Revenue and Customs does not keep a separate record of the time between the receipt of a return and the commencement of an inquiry. It would be disproportionately expensive to recover it.