28. Mr. Brew isasked Chancellor of the Exchequer what is the Inland Revenue procedure for taking into account welfare payments such as wage-related unemployment benefit before making Pay-As-You-Earn refunds.
§ Mr. TaverneNational Insurance unemployment benefit and sickness benefit are exempt from tax and are therefore left out of account in making P.A.Y.E. refunds.
§ Mr. BrewisIs not it possible that considerable sums may be paid, with the result that somebody who is not working may earn considerably more than someone who is doing a hard day's work?
§ Mr. TaverneWhat is behind the hon. Member's question, I think, is that in principle these payments should be taxed, and I think that he is right, but there were formidable administrative and practical difficulties which led to the original decision that they should not be taxed.