§ 47. Mr. Hannahasked the Chancellor of the Exchequer why Income Tax is deducted from the first salary payment of a new officer, not previously subject to the tax, and who would not normally be assessed until the end of the financial year?
§ Sir K. WoodIncome Tax is deducted from the pay of persons payable out of public funds under special provisions in Rules 11 and 15 of the Rules relating to Schedule E which provide that the tax chargeable on official pay shall be deducted out of the pay as and when it is paid.
§ Mr. Glenvil HallHow do they know how much is to be deducted in view of the fact that this is the only payment made so far?
§ Sir K. WoodI will inquire and let the hon. Member know.
§ 51. Mr. Woodburnasked the Chancellor of the Exchequer whether, in order 1213 to avoid the hardship of Income Tax levied on high-earning periods being deducted during periods of low earnings, he will encourage employers to establish savings accounts for employés to provide Income Tax equalisation funds at the credit of each worker in conjunction with the National Savings Movement?
§ Sir K. WoodThe existing facilities for saving already provide means by which money may be accumulated to meet every type of contingency, including such short-term commitments as the payment of taxes.
§ Mr. WoodburnDoes that mean that the Chancellor would agree to receive Savings Certificates in payment of Income Tax?
§ Sir K. WoodNo, Sir, that is another matter.
§ 52. Mr. Woodburnasked the Chancellor of the Exchequer whether, in the deduction of Income Tax from workers wages, instructions will be issued that in the case of short-time weeks, due to air-raids or other interruptions to work, deductions of Income Tax for such weeks will be postponed to the extent that they reduce the net weekly earnings below £3?
§ Sir K. WoodI would remind my hon. Friend that the existing regulations relating to the deduction of Income Tax from wages already provide that the amount of wages to be paid in any week shall not, by reason of the deduction of tax, fall below £2 2s. 0d. a week, or, £3 2s.0d. in the case of a married man who has asked to have this higher limit applied to him. The amount of the short deduction of tax is, of course, made good by subsequent deduction from wages.
§ Mr. WoodburnIs the right hon. Gentleman aware that there are complaints that after the £2 2s. 0d. limit is reached the further deduction of insurance and other sums frequently reduces the amount below £2 2s. 0d.?
§ Sir K. WoodI have not heard of such cases, but if my hon. Friend will give me particulars of any, I will gladly examine them.
§ Mr. R. J. TaylorIn reckoning this limit of £2 2s. 0d., or £3 2s. 0d., as the case may be, will the ordinary deductions from wages be taken into consideration?
§ Sir K. WoodI have given what is a sort of general principle. As my hon. Friend is aware, the authorities have regard to the circumstances of the case, and if there is any case that he has in mind, I will gladly examine it. We want to see this working smoothly and fairly.
§ 54. Sir Reginald Blairasked the Chancellor of the Exchequer whether he will take steps to relieve the difficult financial position of those many persons who are dependent for their income on rentals of leasehold premises, owing to the destruction of such premises by enemy action?
§ Sir K. WoodI am not clear as to the precise point which my hon. Friend desires to raise. If he is referring to Schedule A, I would point out that liability to Income Tax under Schedule A would not continue in respect of property that has been destroyed by enemy action and for which rent ceases to be payable. If my hon. Friend is referring to the general question of financial hardship, I would refer him to the various measures which have been passed dealing with this problem.