§ Mr. Freudasked the Chancellor of the Exchequer, further to his answer to the hon. Member for the Isle of Ely, Official Report, 9 December, c. 620, whether he will now give the weekly pay-as-you-earn tax for a married man with three children earning (a) the national average wage, (b) 80 per cent., (c) 120 per cent., and (d) 150 per cent. of that wage: (i) the latest available date, (ii) in December 1980 and (iii) in December 1978; and whether he will express the wage levels and tax levels in real terms in each case.
§ Mr. Ridley[pursuant to his reply, 16 December 1982, c. 212–13]: The information is as follows, although it does not follow from the separate question to which the hon. Gentleman refers.
The levels of average earnings for October 1982, the latest monthly figure available, December 1980 and December 1978 have been obtained by updating the new earnings survey estimate of average earnings of full time adult males, all occupations in April of each year, taking account of movements in a centred three-month moving average of the whole economy index of average earnings of all employees.
§ Mr. Woolmerasked the Chancellor of the Exchequer in what way he will be able to account to hon. Members 505W and to the Parliamentary Commissioner for Administration in cases relating to the past tax affairs of individuals under the new system of dealing with pay as you earn files currently the subject of a feasibility exercise in certain tax districts.
§ Mr. Ridley[pursuant to his reply, 16 December 1982, c. 212]: Ministers endorsed the decision to undertake a study to test whether it is necessary to preserve all correspondence and to maintain separate files for those taxpayers who are not required to make a return of income annually. Although it will not always be possible, in the future, to make a detailed reconstruction of events, record cards giving information for the current and the preceding six tax years are to be retained and the capacity of the Inland Revenue to repay tax will not be impaired. The selective nature of the records kept will not be used to the disadvantages of the taxpayer.
§ Mr. Woolmerasked the Chancellor of the Exchequer if the Parliamentary Commissioner for Administration responded to the consultancy exercise on the implementation of the Bray report on pay as you earn files; what matters were raised by him; and what reply was sent by the Board of Inland Revenue.
§ Mr. Ridley[pursuant to his reply, 16 December 1982, c. 213]: The Parliamentary Commissioner for Administration did not respond to the consultancy exercise because he had already made his views known on this particular topic. The Inland Revenue wrote to the Commissioner in March 1982 advising him of the report. In his reply the Commissioner indicated that the absence of a detailed record might involve the need for greater Departmental discretion; that it might be necessary to place more reliance on the complainants' records and that sufficient records should be retained so that a coherent account of transactions could be given. The Department acknowledged that in a small number of cases referred to the Commissioner some loss of accountability might arise as a result of the proposals, but considered that it would still be able to respond adequately although in less detail than previously. These exchanges were taken into account when Ministers endorsed the decision to undertake a feasibility exercise on the basis of the proposals.