HC Deb 23 November 1920 vol 135 cc222-3
56. Mr. McDONALD

asked the Chancellor of the Exchequer if he will issue instructions to the collectors of Income Tax to the effect that they must render a complete statement of all amounts due by Income Tax payers at one time, and not, as is the present custom, extending the notices over a period of weeks?

Mr. BALDWIN

I assume that the case which my hon. Friend has in mind is the case in which a taxpayer has several sources of income—possibly in different parts of the country—and therefore receives a number of demands for the payment of Income Tax. The issue of more than one demand in such circumstances is a necessary corollary to the system of taxation at the source which, as my hon. Friend is doubtless aware, is the vital factor in maintaining the yield of the Income Tax.

Mr. McDONALD

Is the right hon. Gentleman aware that, while in many cases, one envelope with two enclosures would be quite sufficient, on the other hand, no fewer than three envelopes and six enclosures have been sent to different individuals? If that were avoided, there would be a great saving to the country?

Mr. BALDWIN

I will note what my hon. Friend proposes.

57. Mr. T. WILSON

asked the Chancellor of the Exchequer whether, in view of the increased amount of income that is exempt from Income Tax, employers in industries in which the standard rate of wage is below the amount exempted from tax are still called upon to make quarterly returns of the amount earned by each employé?

Mr. BALDWIN

I would refer the hon. Member to the Third Schedule to the Finance Act, 1920, from which he will see that, following upon the new Income Tax graduation, Section 105 (1) (b) of the Income Tax, 1918, has been amended, £150 being substituted for the previous figure of £130. The employers' ordinary returns of their employés' earnings are now not required to include cases in which the remuneration does not exceed £150 for the year or, in the case of the quarterly returns of weekly wage earners is less than £37 10s. for the quarter.

Mr. WILSON

Could not the right hon. Gentleman go a little further and make it quite clear that a married man is entitled to certain abatements?

Mr. BALDWIN

I think that that is generally known.

Mr. WILSON

Could there not be stated on the return the amounts that married men are entitled to?

Mr. BALDWIN

I think that that would throw a great burden of work on the employer I will consider it.