§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer what action he proposes to take to ensure that interest is paid to businesses and organisations whose pay-as-you-earn returns upon checking reveal that overpayments have been made.
§ Mr. Norman Lamont[holding answer 19 May 1988]: Clause 120 of the current Finance Bill proposes amendments to section 203 of the Income and Corporation Taxes Act 1988 which will pave the way for payment of interest on repayments of pay-as-you-earn tax to employers made more than one year after the end of the tax year concerned. This change will not come into effect until the necessary computer support is in place, which will
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Higher rate taxpaying units Total income tax liability Region Number As per cent, of total taxpaying units All taxpaying units Higher rate tax-paying units 000s Per cent. £ million £ million North 30 2.7 1,870 280 Yorkshire and Humberside 55 3.3 2,900 530 North West 75 3.5 3,750 680 East Midlands 40 3.0 2,490 460 West Midlands 60 3.2 3,040 590 East Anglia 35 4.8 1,400 370 South East 480 7.2 15,700 5,500 South West 70 4.4 2,930 700 Wales 30 3.4 1,440 270 Scotland 75 4.3 3,420 730 Northern Ireland 20 4.0 760 160 1988–89 income tax regime compared with an indexed 1978–79 regime. The comparison thus allows for budgetary changes in tax rates, thresholds and allowances but not for any change in the definition of the tax base. The 1978–79 allowances and threshold have been indexed in line with the increase in the retail prices index between December 1977 and December 1987. As child tax allowances were being phased out in 1978–79 they have been excluded from the comparison.
not be before 1992. A general interest charge on late payments of pay-as-you-earn by employers will be introduced at the same time.