Taxation: Income Tax

Lord Forsyth of Drumlean Excerpts

Monday 11th October 2010 Lords Chamber

[Lord Sassoon]

My Lords, it is worth reminding ourselves that the great majority of PAYE self-assessments are done online—by 75 per cent of people who are self-assessed. For that largest group of taxpayers, repayments are in the ordinary course made as soon as two to three working days from filing, although there may be a slight delay in the peak in the year around 31 January. For the sort of exercise we are talking about, repayments are normally made within seven working days. That is indeed the thing to focus on rather more than the precise rate of interest.

[Lord Forsyth of Drumlean]

My Lords, what is the total amount which is owed to the Inland Revenue in unpaid tax which is now due?

[Lord Sassoon]

The amount of tax which is now due under this reconciliation exercise is some £2 billion from 1.4 million taxpayers, although, as I said, all amounts under £300 individually, which is for about 900,000 taxpayers, will be written off.