HC Deb 26 March 1942 vol 378 cc2189-91W
Mr. Mainwaring

asked the Chancellor of the Exchequer (i) whether he is aware of the large number of cases in which deductions of Income Tax from wages are wrongly made and that, despite protests by the victims, the deductions continue to be made; and what steps he is taking to secure better assessments;

(2) whether he is aware of the unnecessary hardship and suffering imposed upon large numbers of workpeople who have to wait many weeks for the return of money deducted from wages on account of incorrect assessments; and will he take steps to expedite the machinery dealing with such cases?

Sir K. Wood

I propose to deal with the subject of the deduction of tax from wages when making my Budget Statement, but in the meantime I would like to point out that it is an essential feature of the tax deduction scheme that before any tax can be deducted by the employer the wage-earner is given an opportunity of making a return and is sent a notice of assessment against which he can appeal. In the ordinary case therefore the amount of tax to be deducted will have been agreed with the taxpayer before deduction commences. The commonest cause of over-deduction is the failure of the taxpayer to make his return or to appeal against his assessment at the proper time. If the hon. Member has any case in which he considers that there has been hardship or unnecessary delay in rectifying over-deduction, I would be grateful if he would let me have particulars.

Sir L. Lyle

asked the Chancellor of the Exchequer whether, in view of the impossibility of simplifying Income Tax as a whole during the war period, he will concentrate upon its simplification for weekly or monthly wage-earners whose incomes do not exceed £500 per annum, and introduce a new tax devoid of complications to be deducted from current wages?

Sir K. Wood

I must ask my hon. Friend to await my Budget statement.

Major Kimball

asked the Chancellor of the Exchequer whether he will simplify the procedure for the payment of Income Tax deducted by employers where only a small number of employees are involved by allowing the employer to make one payment and one return of Forms. No. 1 D.S. (H.Y.) and No. 2 D.S. (H.Y.) at the end of the accounting period or upon the departure of the employee if before the end of the period, instead of the monthly payments and monthly renditions of the Form No. 2 D.S. (H.Y.)?

Sir K. Wood

Collectors of taxes have instructions to accept quarterly instead of monthly payment of tax deducted from remuneration in cases where the total amount to be deducted each month does not exceed £1.