§ Mr. HAROLD SMITHasked the Chancellor of the Exchequer whether traders who are entitled to pay Income Tax in respect of their earnings at the rate of 9d. in the £ are compelled to pay at the rate of 1s. 2d. in the £ unless they fill up and return Form 38 before 30th September in the year; whether a considerable number of persons who are entitled to the reduced rate are deprived of the right to claim it by inadvertently neglecting to return Form 38 by the prescribed date; and whether, if so, he can see his way to give, in the form distributed for the purpose of the annual return, a clear intimation of the date before which the claim for reduction must be made, or so amend this Form 38 as to insure that such persons will be more thoroughly informed of the penalty incurred by not returning the form on or before 29th September in the year?
§ Mr. HOBHOUSEClaims to be charged at the lower rate of income tax in respect of earned income are required by law to be made by taxpayers prior to the 30th of September in the year of charge; and failure to prefer a claim thereto within the prescribed period involves a loss of the relief. A clear intimation of the provisions of the law is given on the Form of Return issued to the public; but I will consider whether any further steps in the direction indicated in the concluding sentence of the hon. Member's question can be taken.