§ Mr. Richard Page
asked the Chancellor of the Exchequer what are the cost savings to the Inland Revenue of changing the basis of collecting tax on car and fuel benefits to pay-as-you-earn; and how these savings are made up.
§ Sir Geoffrey Howe
The proposals in the Finance Act 1981 requiring employers to apply PAYE to car and car fuel benefits from April 1982 would have made possible a reduction in Inland Revenue staff numbers of about 150. However, in the light of a number of representations received about the difficulties the regulations would have created for employers the Government have decided to postpone the introduction of any change for one year. Amending legislation to this effect will be included in the next Finance Bill. The Inland Revenue will continue to discuss with employers' representatives ways of overcoming the problems that have been identified and of achieving worthwhile staff savings in this area.