§ Mr. Milburn
To ask the Chancellor of the Exchequer what is his estimate of the number of taxpayers who will face penalties for late return of self-assessment forms; and what is the expected annual yield from such penalties in each of the next three years. 
§ Mr. Jack
[holding answer 9 December 1996]: The Inland Revenue's current working assumption is that 15 per cent. of taxpayers will file their self-assessment tax return later in the first year of the new system, reducing to 10 per cent. in the third year. These figures are based on current taxpayer behaviour, and do not take into 303W account the deterrent effect of late filing penalties or publicity around the filing dates. The automatic penalty for those who do not file by 31 January 1998 will be £100. No estimates have been made of the annual yield from late filing penalties.