§ Mr. Bishopasked the Chancellor of the Exchequer what changes he proposes in income tax codings; and if he will continue to ensure complete secrecy for all transactions.
§ Mr. NottA new system of PAYE coding is being used for the 1973–74 codings which are now being issued and which take account of the changes in the tax system which come into effect on 6th April, 1973. The PAYE codes are being given values such that the code will generally be the total of allowances due, without the final figure. Letters are added to the codes so that any change in the rates of the single person's or married 99W man's allowances made in future Budgets can be put into operation quickly.
The new codes continue to ensure the privacy of taxpayer's private transactions and, save in one respect, give no more information about taxpayer's personal circumstances than can in many cases be inferred from the existing codes. The letters L or H in a man's code show respectively that he is entitled to the lower (single) or the higher (married) allowance; but if the taxpayer does not wish his employer to have the information conveyed by these letters he is invited in the literature accompanying his coding notice to ask the tax office to substitute the letter T. That letter will also be used in a wide range of circumstances in which the tax office must review the code before a change of personal allowances in a future Budget can be put into effect. The letter T does not therefore disclose the taxpayer's personal circumstances. The letter used in a woman's code will be L
GAINS (+) OR LOSSES (-) TO EACH PARENT Married couple 1 child Married couple 2 children Married couple 3 children £p per week Married couple 4 children Weekly earnings Effect on husband Effect on wife Effect on husband Effect on wife Effect on husband Effect on wife Effect on husband Effect on wife A. All earned by husband 10 +1.00 +1.00 +2.00 +1.10 +3.00 +1.10 +4.00 +1.10 15 +0.95 +1.95 +2.95 +3.95 20 -0.15 +0.44 +1.44 +2.44 25 -0.15 +0.27 +0.73 +1.19 30 -0.15 +0.27 +0.73 +1.19 50 -0.15 +0.27 +0.73 +1.19 75 -0.15 +0.27 +0.73 +1.19 100 -0.15 +0.27 +0.73 +1.19 B. Half earned by husband, half earned by wife 10 +1.00 +1.00 +2.00 +1.10 +3.00 +1.10 +4.00 +1.10 15 +1.00 +2.00 +3.00 +4.00 20 +1.00 +2.00 +3.00 +4.00 25 +1.00 +2.00 -3.00 +4.00 30 +0.95 +1.95 +2.95 +3.95 50 -0.15 +0.27 +0.73 +1.19 75 -0.15 +0.27 +0.73 +1.19 100 -0.15 +0.27 +0.73 +1.19 Notes: All children are assumed to be under 11. Rates of tax and allowances used are for 1972–73