HC Deb 09 May 1944 vol 399 cc1730-1W
Sir J. Mellor

asked the Chancellor of the Exchequer whether the amount paid in accordance with the Regulations of the W.L.A. for board and lodging of a land girl is assessable to Income Tax as part of the remuneration of the land girl.

Sir J. Anderson

Where an employer undertakes to provide free board and lodging for an employee the board and lodging is not a taxable emolument and the taxation liability is determined by the cash wage. This general rule of the Income Tax law applies to agricultural employees in the same way as it applies to all other employees for whom the employer provides such benefits in kind. Where a gross wage is payable and the employee is responsible for the cost of his board and lodging the gross wage is taxable.

The position has been explained in the pamphlet "The Farmer's Guide to 'Pay as you Earn'" issued by the Board of Inland Revenue, and also in a circular to county agricultural executive committees. It has been pointed out that where a worker is provided by the employer with free board and lodging in the farmhouse or in a billet or hostel in circumstances where the employer has made himself and not the worker directly responsible for the cost, only the cash wages are assessable to tax. In such a case the Income Tax liability is not affected by the fact that the provision of free board and lodging has to be taken into account in calculating wages under the Agricultural Wages (Regulation) Act.