HC Deb 16 January 1945 vol 407 cc51-2W
Mr. W. H. Green

asked the Chancellor of the Exchequer whether he is now in a position to make an announcement regarding Pay-as-you-earn Income Tax deductions in the case of persons whose income slightly exceeds the exemption limit of £110, having regard to the necessity of encouraging piece workers to increase their output.

Sir J. Anderson

As I explained on 14th December, 1944, in answer to a Question by my hon. and gallant Friend the Member for South Nottingham (Major Markham), this matter is one of considerable difficulty. The Board of Inland Revenue are, however, consulting appropriate employers' organisations with regard to the practicability of certain suggestions which it is hoped would go a long way towards meeting the difficulties where they are most acute.

Sir R. Gower

asked the Chancellor of the Exchequer on what authority inspectors of taxes withhold until the end of the tax year the repayment due to a woman who was married during that year, but continues in employment after marriage and who is entitled to a refund of her Pay-as-you-earn tax deductions from 6th April to the date of marriage.

Sir J. Anderson

My hon. Friend's Question implies that under Pay-as-you-earn when a woman employee marries she becomes entitled automatically to repayment from the Inland Revenue of the whole or part of the Income Tax deducted from her pay up to the date of marriage; but this is not so. It is true that repayment will ultimately be found to be due in most cases but the adjustment of the tax liability for the year cannot be made until all the facts relating to the total income for the whole year are known. It is not the practice of the Inland Revenue to require both the taxpayer and the employer to furnish details until the end of the year, when the whole matter is adjusted in the normal course on receipt of the usual annual returns, but in any case in which it is apparent that a repayment will be due a reasonable repayment would be made on account pending receipt of the full particulars necessary to make the final adjustments.

Sir I. Fraser

asked the Chancellor of the Exchequer if he is aware that the American and Canadian Governments have permitted a special Income Tax deduction to blind people to compensate them for the special expenses which blindness involves; and if he will study this and consider introducing a similar concession in his next Budget.

Sir J. Anderson

I regret that I cannot see my way to recommend legislation designed to give special Income Tax relief in the cases to which my hon. and gallant Friend refers.