§ Mr. Iremongerasked the Chancellor of the Exchequer why Royal Artillery pensioners who are in arrears in receiving the latest increase in pensions are being required to pay Income Tax on the basis of the increased pension without having received the cash.
§ Mr. MacDermotWhere an employee within P.A.Y.E. receives a service pension, the tax deducted from earnings covers the tax due on both the earnings and the pension. By adjusting the P.A.Y.E. coding as from the beginning of this tax year, the tax due on the increased pension is spread over the whole year and an accumulation of arrears is avoided.