§ Mr. Rookerasked the Chancellor of the Exchequer if he will make a statement on the proposals for the systematic destruction of certain pay-as-you-earn files by the Inland Revenue.
§ Mr. RidleyAs I announced to the House earlier this year—[Vol. 28, c.182]—we have concluded that for the majority of people who pay tax under pay-as-you-earn much of the material held in tax office files is retained unnecessarily. The Inland Revenue therefore published a consultative paper in July, a copy of which is in the Library, discussing possible changes in their record-keeping procedures. Following the responses to this paper, I have authorised the Revenue to proceed with a pilot study in 11 tax offices; the aim of the study is to test whether it is necessary to preserve all communications, and to maintain separate files, for those taxpayers who are not required to make a return of income annually.