New Clause 4 — Duty on HMRC to expedite VAT registration and repayment applications

Part of Orders of the Day – in the House of Commons at 6:45 pm on 25 June 2007.

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Photo of David Gauke David Gauke Conservative, South West Hertfordshire 6:45, 25 June 2007

I agree with the Financial Secretary that we have had a good debate this afternoon. My hon. Friends the Members for Ludlow (Mr. Dunne) and for Braintree (Mr. Newmark) and my right hon. Friend Mr. Redwood have highlighted some of the issues for business caused by the delays in VAT registrations and repayments. Indeed, Julia Goldsworthy supported the objectives of new Clause 4.

I am grateful to the Financial Secretary for clearly acknowledging the difficulties. He has referred to 95 per cent. of VAT registration cases being determined within 38 days, which is somewhat above the 21-day HMRC target. He has been clear that problems are evident, and he has recognised the difficulties for businesses and that some of the delays are "unacceptable".

The Financial Secretary adopted a slightly different tone than has sometimes been the case for Ministers. On 24 January in evidence to the Treasury Committee, the Paymaster General did not seem to recognise the difficulties. None the less, I appreciate the tone adopted by the hon. Gentleman. He has been clear that he sees this as a temporary dip. Obviously we will watch the situation closely to see whether the steps that he outlined that HMRC is taking to address this succeed in meeting those objectives. If next year improvements have not been achieved, we will look at the matter again. However, I beg to ask leave to withdraw the motion.

Motion and clause, by leave, withdrawn.

Annotations

Terry Brown
Posted on 16 Jul 2007 10:40 am (Report this annotation)

The withdrawal of this clause on the basis that you accept that it is allowable for HMRC to take as long as they see fit to repay monies that have been paid, and been checked as paid, by a company in a legal fashion, would appear to be against European law, (Human Rights)as ruled against the Ukranian Government who also took this approach. No mention made of this as part of argument. You should find out more facts before making requests on so many different matters.

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clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.