Comments on: Why would you re-design a form to make it harder to use? http://www.malcolmcoles.co.uk/blog/re-design-form-harder/ Where to find Malcolm Coles, reviews, and tips on how to do things I couldn't do. Mon, 25 Mar 2013 16:22:31 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Gery http://www.malcolmcoles.co.uk/blog/re-design-form-harder/#comment-13592 Gery Fri, 01 Oct 2010 12:05:59 +0000 http://www.malcolmcoles.co.uk/blog/?p=4971#comment-13592 I challenge anyone to report me as a benefit cheat on this form - https://secure.dwp.gov.uk/benefitfraud/ (obviously I am not actually asking you to do it) but I love some of the questions! I wonder if anyone actually fills any of it in! I challenge anyone to report me as a benefit cheat on this form - https://secure.dwp.gov.uk/benefitfraud/ (obviously I am not actually asking you to do it) but I love some of the questions! I wonder if anyone actually fills any of it in!

]]> By: Nick http://www.malcolmcoles.co.uk/blog/re-design-form-harder/#comment-13552 Nick Fri, 01 Oct 2010 08:13:35 +0000 http://www.malcolmcoles.co.uk/blog/?p=4971#comment-13552 I somehow feel compelled to take a stab at the maths. No doubt I'm oversimplifying but we'd need to know: a) no. of flat rate VAT reg. businesses: Total registered = 2M (http://www.statistics.gov.uk/cci/nugget.asp?id=1238) I'm taking a stab at 10% are flat rate. So 200K businesses are on the flat rate scheme. b) average income 50K (ex vat)? Too conservative? c) avegage percent Let's say 10%. May be a little higher. Now, we have to work out what proportion of those businesses complete the VAT form incorrectly. This is a little more complicated as it's dynamic but some thoughts: 1) People who already complete the form will, in the main (but certainly not always), continue to do it correctly. 2) A proportion of newcomers to the scheme will get it right and others wrong. So ... let's assume an average over a few years or so at 10% of the total users are filling out this form incorrectly. HMRC should get = 200K x 50K x 1.175 (VAT) X 0.1 (flat rate) = £1.175 BN What it actually gets is 90% of the above + the amount paid by the ex-VAT 10% = 1.0575BN + (20K x 50K X 0.1) = £1.1575 BN The difference? £17.5M a year. Assume, upside/downside of +/-40% means A *broad* estimate of the inaccuracy is that it costs the UK Taxpayer £10-25M a year.* * Disclaimer: It's not yet 9.30 so the maths above just might be horribly flawed! I somehow feel compelled to take a stab at the maths. No doubt I'm oversimplifying but we'd need to know:

a) no. of flat rate VAT reg. businesses:

Total registered = 2M (http://www.statistics.gov.uk/cci/nugget.asp?id=1238)
I'm taking a stab at 10% are flat rate. So 200K businesses are on the flat rate scheme.

b) average income

50K (ex vat)? Too conservative?

c) avegage percent

Let's say 10%. May be a little higher.

Now, we have to work out what proportion of those businesses complete the VAT form incorrectly. This is a little more complicated as it's dynamic but some thoughts:
1) People who already complete the form will, in the main (but certainly not always), continue to do it correctly.
2) A proportion of newcomers to the scheme will get it right and others wrong.

So ... let's assume an average over a few years or so at 10% of the total users are filling out this form incorrectly.

HMRC should get = 200K x 50K x 1.175 (VAT) X 0.1 (flat rate) =
£1.175 BN

What it actually gets is 90% of the above + the amount paid by the ex-VAT 10% = 1.0575BN + (20K x 50K X 0.1) =
£1.1575 BN

The difference? £17.5M a year.

Assume, upside/downside of +/-40% means

A *broad* estimate of the inaccuracy is that it costs the UK Taxpayer £10-25M a year.*

* Disclaimer: It's not yet 9.30 so the maths above just might be horribly flawed!

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