§ Mr. WilshireTo ask the Chancellor of the Exchequer when it is planned to implement the new system of pay and file for companies, introduced in the Finance (No. 2) Act 1987, and the new interest rules for employers' PAYE deductions, introduced in the Finance Act 1988.
§ Mr. Norman LamontThe implementation of pay and file for companies, and the general interest charge on employers' PAYE deductions delayed beyond the end of the tax year, have to be fitted in with the other major changes in direct taxation which are in hand. When the enabling legislation for these measures was before the House in 1987 and 1988 respectively, Ministers said that on present plans they would not be implemented until 1992 at the earliest. The detailed timetable has been revised since then to take account of new initiatives such as independent taxation.
Under this revised timetable, the starting dates for these two measures will not be until 1993 at the earliest. I cannot be more precise at this stage. Firm starting dates will be announced in due course, and the likely starting date for pay and file will be announced in sufficient time to allow companies and their advisers to complete their preparations for the change. Companies which would, at present, have difficulty in meeting the time limits under pay and file for estimating their tax liability and filing their return, will be able to bring themselves up to date gradually over the period from now up to 1993.