HC Deb 22 February 1949 vol 461 cc1683-4
49. Colonel Ropner

asked the Chancellor of the Exchequer why men who have recently joined the Territorial Army have received an Income Tax Notice of Coding for 1949–50 which shows a deduction from admissible tax allowances in respect of Territorial pay; and if he will remedy this.

70. Brigadier Medlicott

asked the Chancellor of the Exchequer if he is aware that men joining the Territorial Army are receiving Income Tax notices indicating a deduction from tax allowances in respect of Territorial Army pay, and that this is causing dissatisfaction; and if he will take steps to remove this grievance.

Sir S. Cripps

The training pay and allowances to members of the Territorial Army, other than the training expenses allowances and annual bounty, are liable to Income Tax. As the taxable amounts are not known in advance, they are not normally taken into account in the P.A.Y.E. coding for the year of payment but are left for assessment at the end of the year. Any member of the Territorial Army who is dissatisfied with his coding in this respect should communicate with his tax office.

Colonel Ropner

Does not the right hon. and learned Gentleman know that coding has been done in advance and that men who have recently joined the Territorial Army are already receiving assessments for the year 1949–50? While he has said it is normal that they should not be assessed in advance, cannot he take steps to ensure that they are not assessed in advance, and that these men are not given notice that they are to pay taxation on money they have not yet earned?

Sir S. Cripps

It has apparently happened in a few isolated cases, although what is the particular reason I cannot at the moment say; but the general practice is as I have stated.

Mr. Oliver Stanley

Would not the simplest Way to avoid such difficulties in the future be to make these particular payments tax free? Would not that be one of the best ways for the right hon. and learned Gentleman to follow up his broadcast?

Sir S. Cripps

I think not. The House discussed this very fully during the Finance Bill, 1947, and came to a different conclusion.

Lieut.-Commander Gurney Braithwaite

Is it possible for assessments to be made covering the financial year in respect of rates of taxation that have not yet been announced?

Sir S. Cripps

It is not a question of assessment but of fixing the code number.