§ 24. Mr. Royleasked the Chancellor of the Exchequer if he will give instructions that Pay-As You-Earn contributions shall not be adjusted in respect of the current Income Tax period when they concern the prospective earning of children about to leave school four months later.
§ Mr. PowellNo, Sir. In the majority of cases these adjustments prevent under-deduction of tax and thus avoid the consequent inconvenience to taxpayers in later periods. But if the hon. Gentleman has any particular case in mind where difficulty has arisen, I shall be glad to have it.
§ Mr. RoyleI am obliged to the hon. Gentleman, but is he aware that I could send him a case of a war widow who struggled to bring up her son by going out to work herself, who has already had adjustments made in her Pay-As-You-Earn payments in spite of the fact that her son does not leave school until August t so there is a four months' lapse in which she is actually paying the increased contribution? That is the kind of thing I have in mind.
§ Mr. PowellAs I have said, in general this arrangement is to the advantage and convenience of the taxpayer, but I will gladly look at the individual case mentioned by the hon. Gentleman.
Mr. H. WilsonWill the hon. Gentleman agree not to be too precipitous in this matter, since the Opposition will have a valuable Amendment down on this point to the Finance Bill? If the Treasury has any heart at all it will accept that Amendment, and a large number of others which we shall be tabling, and it would be a pity to have to duplicate the work of the Inland Revenue in this respect.
§ Mr. PowellI hope to avoid precipitancy, but I would rather not hold up investigation of this case.