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(a) a person's "relevant supplies" are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations;
(b) the "appropriate percentage" is the percentage so specified for the category of business carried on by the person in question;
(c) a person's "relevant turnover" is the total of—
(i) the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and
(ii) the value of those of his relevant supplies that are exempt supplies.
(3) The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT.
(4) The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations.
(5) Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax. This is without prejudice to subsection (3) above.
(6) The regulations may—
(a) provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period;
(b) provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period;
(c) make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category.
(7) The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners—
(a) when supplies are to be treated as taking place for the purposes of ascertaining a person's relevant turnover for a particular period;
(b) the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme.

23 Apr 2002 : Column 273


(8) The regulations may make provision enabling the Commissioners—
(a) to authorise a person to participate in the flat-rate scheme with effect from—
(i) a day before the date of his election to participate, or
(ii) a day that is not earlier than that date but is before the date of the authorisation;
(b) to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction.
The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force.
(9) Regulations under this section—
(a) may make different provision for different circumstances;
(b) may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act.".
(2) In section 83 of that Act, after paragraph (f) there shall be inserted—
"(fza) a decision of the Commissioners—
(i) refusing or withdrawing authorisation for a person's liability to pay VAT (or entitlement to credit for VAT) to be determined as mentioned in subsection (1) of section 26B;
(ii) as to the appropriate percentage or percentages (within the meaning of that section) applicable in a person's case.".
(3) In section 84 of that Act, after subsection (4) there shall be inserted—
"(4ZA) Where an appeal is brought—
(a) against such a decision as is mentioned in section 83(fza), or
(b) to the extent that it is based on such a decision, against an assessment,
the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for the decision.".
(4) This Resolution shall come into force on 24th April 2002.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
20. Value added tax (invoices)
Resolved,
That provision may be made about VAT invoices
21. Income tax (charge and rates for 2002-03)
Motion made and Question put,
That income tax shall be charged for the year 2002-03, and for that year—
(a) the starting rate shall be 10%;
(b) the basic rate shall be 22%;
(c) the higher rate shall be 40%.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The House divided: Ayes 344, Noes 56.

Division No. 215
[10.29 pm


AYES


Abbott, Ms Diane
Adams, Mrs Irene (Paisley N)
Ainsworth, Bob (Cov'try NE)
Alexander, Douglas
Allen, Graham
Anderson, Rt Hon Donald
(Swansea E)
Armstrong, Rt Hon Ms Hilary
Atherton, Ms Candy
Atkins, Charlotte
Austin, John
Bailey, Adrian
Baird, Vera
Barnes, Harry
Barron, Kevin
Battle, John
Bayley, Hugh
Beard, Nigel
Beckett, Rt Hon Margaret
Beggs, Roy
Bell, Stuart
Benn, Hilary
Bennett, Andrew
Benton, Joe
Best, Harold
Betts, Clive
Blackman, Liz
Blears, Ms Hazel
Blizzard, Bob
Boateng, Rt Hon Paul
Borrow, David
Bradley, Rt Hon Keith (Withington)
Bradley, Peter (The Wrekin)
Brennan, Kevin
Brown, Rt Hon Gordon
(Dunfermline E)
Brown, Rt Hon Nicholas
(Newcastle E & Wallsend)
Brown, Russell (Dumfries)
Browne, Desmond
Bryant, Chris
Buck, Ms Karen
Burgon, Colin
Burnham, Andy
Byers, Rt Hon Stephen
Caborn, Rt Hon Richard
Cairns, David
Campbell, Alan (Tynemouth)
Campbell, Mrs Anne (C'bridge)
Caplin, Ivor
Casale, Roger
Caton, Martin
Cawsey, Ian
Challen, Colin
Chapman, Ben (Wirral S)
Chaytor, David
Clapham, Michael
Clark, Mrs Helen (Peterborough)
Clark, Dr Lynda
(Edinburgh Pentlands)
Clark, Paul (Gillingham)
Clarke, Rt Hon Tom (Coatbridge)
Clarke, Tony (Northampton S)
Clelland, David
Clwyd, Ann
Coaker, Vernon
Coffey, Ms Ann
Cohen, Harry
Coleman, Iain
Colman, Tony
Connarty, Michael
Cook, Frank (Stockton N)
Cook, Rt Hon Robin (Livingston)
Cooper, Yvette
Corbyn, Jeremy
Corston, Jean
Cousins, Jim
Cranston, Ross
Crausby, David
Cruddas, Jon
Cryer, John (Hornchurch)
Cunningham, Rt Hon Dr Jack
(Copeland)
Cunningham, Jim (Cov'try S)
Cunningham, Tony (Workington)
Curtis–Thomas, Mrs Claire
Dalyell, Tam
Davey, Valerie (Bristol W)
David, Wayne
Davidson, Ian
Davies, Rt Hon Denzil (Llanelli)
Dawson, Hilton
Dean, Mrs Janet
Denham, Rt Hon John
Dhanda, Parmjit
Dismore, Andrew
Dobbin, Jim
Dobson, Rt Hon Frank
Dodds, Nigel
Donohoe, Brian H
Doran, Frank
Dowd, Jim
Drew, David
Eagle, Angela (Wallasey)
Eagle, Maria (L'pool Garston)
Edwards, Huw
Efford, Clive
Ellman, Mrs Louise
Ennis, Jeff
Farrelly, Paul
Field, Rt Hon Frank (Birkenhead)
Fitzpatrick, Jim
Fitzsimons, Mrs Lorna
Flint, Caroline
Follett, Barbara
Foster, Rt Hon Derek
Foster, Michael (Worcester)
Foster, Michael Jabez (Hastings)
Foulkes, George
Francis, Dr Hywel
Galloway, George
Gapes, Mike
Gardiner, Barry
George, Rt Hon Bruce (Walsall S)
Gerrard, Neil
Gibson, Dr Ian
Gidley, Sandra
Godsiff, Roger
Goggins, Paul
Griffiths, Jane (Reading E)
Griffiths, Win (Bridgend)
Grogan, John
Hain, Rt Hon Peter
Hall, Mike (Weaver Vale)
Hall, Patrick (Bedford)
Hamilton, David (Midlothian)
Hamilton, Fabian (Leeds NE)
Hanson, David
Havard, Dai
Healey, John
Henderson, Doug (Newcastle N)
Henderson, Ivan (Harwich)
Hendrick, Mark
Hepburn, Stephen
Heppell, John
Hermon, Lady
Hill, Keith
Hodge, Margaret
Hoey, Kate
Hood, Jimmy
Hope, Phil
Hopkins, Kelvin
Howarth, Rt Hon Alan (Newport E)
Howarth, George (Knowsley N)
Hoyle, Lindsay
Hughes, Beverley (Stretford)
Humble, Mrs Joan
Hurst, Alan
Hutton, Rt Hon John
Iddon, Dr Brian
Illsley, Eric
Ingram, Rt Hon Adam
Irranca–Davies, Huw
Jackson, Helen (Hillsborough)
Jamieson, David
Jenkins, Brian
Johnson, Alan (Hull W & Hessle)
Johnson, Miss Melanie
(Welwyn Hatfield)
Jones, Helen (Warrington N)
Jones, Jon Owen (Cardiff C)
Jones, Kevan (N Durham)
Jones, Lynne (Selly Oak)
Jones, Martyn (Clwyd S)
Jowell, Rt Hon Tessa
Kaufman, Rt Hon Gerald
Keen, Alan (Feltham & Heston)
Keen, Ann (Brentford & Isleworth)
Kelly, Ruth
Kemp, Fraser
Kennedy, Jane (Wavertree)
Khabra, Piara S
Kidney, David
Kilfoyle, Peter
King, Andy (Rugby & Kenilworth)
King, Ms Oona (Bethnal Green)
Knight, Jim (S Dorset)
Kumar, Dr Ashok
Ladyman, Dr Stephen
Lammy, David
Lawrence, Mrs Jackie
Laxton, Bob
Lazarowicz, Mark
Lepper, David
Leslie, Christopher
Levitt, Tom
Lewis, Ivan (Bury S)
Lewis, Terry (Worsley)
Liddell, Rt Hon Mrs Helen
Linton, Martin
Lucas, Ian
Luke, Iain
Lyons, John
McAvoy, Thomas
McCartney, Rt Hon Ian
McDonagh, Siobhain
MacDonald, Calum
McDonnell, John
MacDougall, John
McFall, John
McIsaac, Shona
McKechin, Ann
McKenna, Rosemary
Mackinlay, Andrew
McNulty, Tony
Mactaggart, Fiona
McWalter, Tony
Mahmood, Khalid
Mahon, Mrs Alice
Mallaber, Judy
Mandelson, Rt Hon Peter
Mann, John
Marris, Rob
Marsden, Gordon (Blackpool S)
Marshall, Jim (Leicester S)
Marshall–Andrews, Robert
Martlew, Eric
Meacher, Rt Hon Michael
Merron, Gillian
Michael, Rt Hon Alun
Milburn, Rt Hon Alan
Miliband, David
Miller, Andrew
Mitchell, Austin (Gt Grimsby)
Moffatt, Laura
Morgan, Julie
Morley, Elliot
Morris, Rt Hon Estelle
Mullin, Chris
Munn, Ms Meg
Murphy, Denis (Wansbeck)
Murphy, Jim (Eastwood)
Murphy, Rt Hon Paul (Torfaen)
Naysmith, Dr Doug
Norris, Dan
O'Brien, Bill (Normanton)
Olner, Bill
O'Neill, Martin
Organ, Diana
Osborne, Sandra (Ayr)
Owen, Albert
Paisley, Rev Ian
Palmer, Dr Nick
Pearson, Ian
Perham, Linda
Picking, Anne
Pickthall, Colin
Pike, Peter
Plaskitt, James
Pond, Chris
Prentice, Ms Bridget (Lewisham E)
Primarolo, Dawn
Prosser, Gwyn
Purchase, Ken
Purnell, James
Quin, Rt Hon Joyce
Quinn, Lawrie
Rammell, Bill
Rapson, Syd
Raynsford, Rt Hon Nick
Reed, Andy (Loughborough)
Robertson, John
(Glasgow Anniesland)
Robinson, Geoffrey (Cov'try NW)
Robinson, Mrs Iris (Strangford)
Robinson, Peter (Belfast E)
Roche, Mrs Barbara
Rooney, Terry
Ross, Ernie
Roy, Frank
Ruane, Chris
Ruddock, Joan
Russell, Ms Christine (Chester)
Ryan, Joan
Sarwar, Mohammad
Savidge, Malcolm
Sawford, Phil
Sedgemore, Brian
Shaw, Jonathan
Sheerman, Barry
Sheridan, Jim
Simon, Siôn
Simpson, Alan (Nottingham S)
Singh, Marsha
Skinner, Dennis
Smith, Rt Hon Andrew (Oxford E)
Smith, Angela (Basildon)
Smith, Rt Hon Chris (Islington S)
Smith, Jacqui (Redditch)
Smith, John (Glamorgan)
Soley, Clive
Southworth, Helen
Spellar, Rt Hon John
Squire, Rachel
Starkey, Dr Phyllis
Steinberg, Gerry
Stevenson, George
Stewart, David (Inverness E)
Stewart, Ian (Eccles)
Stoate, Dr Howard
Strang, Rt Hon Dr Gavin
Straw, Rt Hon Jack
Stringer, Graham
Stuart, Ms Gisela
Sutcliffe, Gerry
Tami, Mark
Taylor, Rt Hon Ann (Dewsbury)
Taylor, David (NW Leics)
Thomas, Gareth (Clwyd W)
Timms, Stephen
Tipping, Paddy
Todd, Mark
Touhig, Don
Trickett, Jon
Truswell, Paul
Turner, Dennis (Wolverh'ton SE)
Turner, Dr Desmond (Kemptown)
Turner, Neil (Wigan)
Twigg, Stephen (Enfield)
Tynan, Bill
Walley, Ms Joan
Ward, Ms Claire
Wareing, Robert N
Watson, Tom
Watts, David
White, Brian
Whitehead, Dr Alan
Wicks, Malcolm
Williams, Rt Hon Alan
(Swansea W)
Williams, Mrs Betty (Conwy)
Wilson, Brian
Winnick, David
Winterton, Ms Rosie (Doncaster C)
Woodward, Shaun
Woolas, Phil
Worthington, Tony
Wright, Anthony D (Gt Yarmouth)
Wright, David (Telford)
Wright, Tony (Cannock)
Wyatt, Derek

Tellers for the Ayes:


Mrs. Anne McGuire and
Mr. Nick Ainger.


NOES


Allan, Richard
Barrett, John
Brake, Tom
Breed, Colin
Brooke, Mrs Annette L
Burnett, John
Burnside, David
Burstow, Paul
Cable, Dr Vincent
Calton, Mrs Patsy
Campbell, Rt Hon Menzies
(NE Fife)
Carmichael, Alistair
Chidgey, David
Cotter, Brian
Davey, Edward (Kingston)
Doughty, Sue
Ewing, Annabelle
Foster, Don (Bath)
George, Andrew (St Ives)
Gidley, Sandra
Green, Matthew (Ludlow)
Harris, Dr Evan (Oxford W)
Harvey, Nick
Heath, David
Holmes, Paul
Hughes, Simon (Southwark N)
Jones, Nigel (Cheltenham)
Keetch, Paul
Kirkwood, Archy
Laws, David
Llwyd, Elfyn
Marsden, Paul (Shrewsbury)
Moore, Michael
Oaten, Mark
Öpik, Lembit
Price, Adam
Pugh, Dr John
Reid, Alan (Argyll & Bute)
Rendel, David
Robertson, Angus (Moray)
Salmond, Alex
Sanders, Adrian
Stunell, Andrew
Taylor, Matthew (Truro)
Taylor, Dr Richard (Wyre F)
Thomas, Simon (Ceredigion)
Thurso, John
Tonge, Dr Jenny
Tyler, Paul
Webb, Steve
Weir, Michael
Williams, Hywel (Caernarfon)
Williams, Roger (Brecon)
Willis, Phil
Wishart, Pete
Younger–Ross, Richard

Tellers for the Noes:


Bob Russell and
Sir Robert Smith.

Question accordingly agreed to.

23 Apr 2002 : Column 276


23 Apr 2002 : Column 277

23 Apr 2002 : Column 278

The House divided: Ayes 387, Noes 151.


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