14. Sir B. RhysWilliams asked the Chancellor of the Exchequer what estimate he has made of the savings to be made by employers in the administration of Pay-As-You-Earn through the abolition of negative income-tax allowances.
§ Mr. DiamondInformation on which to base an estimate is not available; it would depend, among other things, on what alternative arrangements were made to replace tax allowances.
§ Sir B. Rhys WilliamsDoes the right hon. Gentleman agree with my estimate that the cost of running the Pay-As-You-Earn system to employers on behalf of the Inland Revenue is currently between £30 million and £50 million a year?
§ Mr. DiamondNo, I cannot agree. I have heard figures quoted. One figure I have heard quoted—I think by the hon. Gentleman himself—was between £25 million and £50 million. It seems to have risen since the last occasion.