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Algebra
Jul 31, 2008, 05:40 AM
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Mike
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Jul 31, 2008, 05:40 AM
We reported yesterday that the statistics for VAT registration delays were seriously misleading, because HMRC 'capped' the maximum number of days between application and registration at 60.
Now, in August 2007, the HMRC statistics showed that the average number of days to process low-risk applications was supposed to be 42. We also know that 14.4% of applications were dealt with in 14 days.
So this is where I try to remember how to do algebra...
Assume the 14.4% each took exactly 14 days.
If the rest of the applications that took under 60 days were all evenly spread, they would have averaged 36 days.
A bit of algebra then gives me a figure of about 38% of the applications taking 60 days or more.
Those 38% must have averaged a LOT more than 60 days: you aren't going to get more than a third of the total processed in a couple of days.
At the rate they were going, it should take about 100 days to finish them all, so let's say they average 80 days.
Plug that back into the formula, and I make the real average around 50 days, rather than 42.
(0.14 x 14) + (0.48 x 36) + (0.38 x 80), if you want to check.
To return to the distinctly better-than-average Taxation.co.uk, click here.
Now, in August 2007, the HMRC statistics showed that the average number of days to process low-risk applications was supposed to be 42. We also know that 14.4% of applications were dealt with in 14 days.
So this is where I try to remember how to do algebra...
Assume the 14.4% each took exactly 14 days.
If the rest of the applications that took under 60 days were all evenly spread, they would have averaged 36 days.
A bit of algebra then gives me a figure of about 38% of the applications taking 60 days or more.
Those 38% must have averaged a LOT more than 60 days: you aren't going to get more than a third of the total processed in a couple of days.
At the rate they were going, it should take about 100 days to finish them all, so let's say they average 80 days.
Plug that back into the formula, and I make the real average around 50 days, rather than 42.
(0.14 x 14) + (0.48 x 36) + (0.38 x 80), if you want to check.
To return to the distinctly better-than-average Taxation.co.uk, click here.
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