HL Deb 04 April 1967 vol 281 cc846-7
LORD WISE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government how many officials are employed and at what estimated annual cost to deal with the examination of claims and refund of payments to old age pensioners in respect of selective employment tax contributions paid by them for domestic help or otherwise; also what annual gain or loss in revenue it is anticipated will accrue to, or be suffered by, the Exchequer thereby.]

LORD BOWLES

My Lords, the number of staff at present employed by the Ministry of Social Security at the Selective Employment Tax Repayments Office, which deals with all claims for refund of this tax from employers of domestic or nursing assistance in private households is 61, and the estimated annual staff costs amount to £78,000. Nearly 28,000 of the 33,000 claims dealt with during the period up to February 28, 1967, were made on the basis that the household included a person over the age of 70; the claimant does not have to be a retirement pensioner. The total amount provided in the Estimates of the Ministry of Social Security for 1967–68 in respect of refunds of selective employment tax is £1½ million.

LORD WISE

My Lords, while thanking my noble friend for that reply, can he say whether at the end of any year there would be a loss or a gain to the Revenue in respect of the payment of this particular tax by old age pensioners? Would he also say how many of the staff are new employees of the Department, or whether they have been seconded from other Departments?

LORD BOWLES

My Lords, I cannot answer my noble friend's second question, but the answer to the first is that obviously the refunds made of this tax—and we estimate that for this coming year they will be £1½ million—represent, I think, almost the total loss to the Revenue.

LORD WISE

My Lords, if there is neither loss nor gain, would it not be advisable for this tax to be abolished?

LORD BOWLES

My Lords, that certainly does not arise out of this Question.