§ 19. Mr. Doverasked the Chancellor of the Exchequer what are the reasons for the arrangement whereby tax refunds due to people claiming unemployment benefit are not able to be made until the end of a financial year.
§ Mr. RidleyBenefits paid to the unemployed are now taxable. If a person continued to receive tax refunds during unemployment, without regard to the fact that he was being paid benefit, he would incur a liability to tax which he would have to settle on his return to work. We decided that the best course would be for claimants neither to suffer deductions nor to receive refunds of tax. Any net refund due is, therefore, calculated and paid at the end of the person's claim or the end of the tax year, whichever is the sooner.