§ Mr. Brothertonasked the Chancellor of the Exchequer what ruling has been given by the Inland Revenue on the practice whereby businesses whose value added tax refunds have been frozen by industrial action at the value added tax computer centre can offset amounts owing to them by making reductions on PAYE payments.
§ Mr. Robert SheldonValue added tax and income tax collected under pay as you earn arrangements are distinct. But Inland Revenue collectors of tax will have regard to any liquidity problems which are caused by the non-receipt of VAT funds and they will not take precipitate action to collect tax falling due where there is genuine temporary difficulty about paying in such cases.