HC Deb 22 February 1955 vol 537 cc131-3W
Sir W. Darling

asked the Financial Secretary to the Treasury what is the cost, per cent., of the collection of "Pay as You Earn" as compared with cost of assessing and collection of Purchase Tax.

Mr. H. Brooke

I regret that it is not possible to give separate figures for the cost of assessing and collecting either Purchase Tax or Income Tax collected under P.A.Y.E. In 1953–54 the total cost of collecting Inland Revenue Duties was 1.23 per cent., and of Customs and Excise Duties 0.76 per cent., of the gross yield.

Sir W. Darling

asked the Financial Secretary to the Treasury if the system of collection of Income Tax by unpaid agents under "Pay As You Earn" is now a permanent part of the tax-collecting system; how many such unpaid agents there are; and how much was collected by this method in the years 1945 and 1954, respectively.

Mr. H. Brooke

I am not aware of anything likely to lead in the near future to any major change in the P.A.Y.E. system. The total number of points from which tax deducted under P.A.Y.E. is remitted to Inland Revenue offices is nearly 900,000. Many large concerns have more than one remitting point. The total tax collected under P.A.Y.E. was £575 million in the calendar year 1945 and £610 million in the calendar year 1954. These two figures are not completely comparable, as P.A.Y.E. did not apply to the armed forces in 1945.

Sir W. Darling

asked the Financial Secretary to the Treasury what proposals are under consideration for unifying tax and rate collection; and if he will list the various methods and agencies by which taxes are collected in the United Kingdom from citizens.

Mr. H. Brooke

No proposals for unifying tax and rate collection are under consideration. In answer to the second part of my hon. Friend's Question, I think he will find the information he requires in the 97th Report of the Commissioners of Inland Revenue and in the 45th Report of the Commissioners of Customs and Excise.

Sir W. Darling

asked the Financial Secretary to the Treasury how many tax collecting offices exist in the United Kingdom; what is the total staff of tax collectors; and what prospect there is of reducing their numbers.

Mr. H. Brooke

There are about 1,000 local Inland Revenue offices and about 1,500 Customs and Excise offices in the United Kingdom. The staff of the Inland Revenue, excluding staff engaged on valuation for rating, is some 41,000, and of the Customs and Excise some 15,000. In answer to the last part of his Question, the number of staff employed is constantly under review, but my hon. Friend will not, I am sure, expect me to forecast whether it might be affected by future changes in taxation.

Sir W. Darling

asked the Financial Secretary to the Treasury if he will give an estimate of the percentage over total retail turnover in the United Kingdom which would be necessary to provide the amount now collected in selected commodities at varied rates in the form of Purchase Tax.

Mr. H. Brooke

Assuming that such a tax covered the whole field of retail expenditure, including all foodstuffs, drink, tobacco, newspapers and books, hairdressing and laundry charges, and so on, the necessary rate would be about 3 or 4 per cent.