HC Deb 15 April 1964 vol 693 cc408-9
27. Mr. Swingler

asked the Secretary of State for Defence what representations he has received from Territorial Army Associations about the levying of Income Tax on Territorial Army pay several years in arrears; and if he will consult the Chancellor of the Exchequer about the alleviation of cases of hardship and the devising of a more equitable system of levying tax from Territorial Army soldiers.

Mr. Ramsden

None, but if the hon.. Gentleman will let me have details of the cases about which he wrote to me in general terms on 5th April, I will look into them with my right hon.. Friend the Chancellor of the Exchequer.

Mr. Swingler

Has the right hon.. Gentleman had previous complaints of this character? Is he aware that some Territorial Army units at the moment are extremely disturbed because their members are receiving tax demands as much as five or even seven years in arrears? It seems that the system is extraordinarily inefficient, and is bound to create hardship. I will certainly supply the right hon.. Gentleman with details. Will he investigate the matter carefully with the Treasury?

Mr. Ramsden

Until 1957 it was left entirely to the individual to assess and declare his Territorial Army pay on his annual tax return. If this were not done by any individual—as might happen, perhaps, in civilian life in some cases—the Inland Revenue is within its right sin submitting demands. But since 1958 Army paymasters have helped individuals by informing them of their total taxable Territorial Army emoluments, and if an individual declares these on his annual return, tax can be recovered by adjusting the tax code for the next year in the normal way, which is a better way of dealing with the matter.

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