§ Major Markhamasked the Chancellor of the Exchequer whether he is aware that under the Pay-as-you-earn scheme a person earning over £110 and less than £133 per annum has to pay Income Tax at the rate of 15s. in the £ as soon as earnings exceed £110 and consequently there is much absenteeism among female workers in certain industries essential to the war effort; and whether he will take steps to amend this anomaly as soon as possible in order that fuller production may be encouraged.
§ Sir J. AndersonI am aware that the operation of the Pay-as-you-earn system gives rise to certain anomalies in cases which fall within the application of the provisions of the Income Tax Acts governing the charge of tax in marginal cases where the taxpayer's income slightly exceeds the exemption limit of £110. The matter is a difficult one, but the Board of Inland Revenue are examining the possibility of arranging for the deductions of tax to be adjusted so as to remove or reduce the anomalies.
Miss Rathboneasked the Chancellor of the Exchequer whether it is proposed that 1364W the intended children's allowance to be provided in the promised Bill shall be subject to Income Tax.
§ Sir J. AndersonI would refer my hon. Friend to the reply which was given to the hon. Member for East Middlesbrough (Mr. A. Edwards) on 5th December. I am sending her a copy of that reply. [OFFICIAL REPORT, 5th December, 1944; c. 354.]