§ Mr. StrangTo ask the Chancellor of the Exchequer whether there have been any discussions with representatives of farmers about allowing farmers who pay the poll tax for employees in tied cottages to set the sums involved against tax.
§ Mr. Norman Lamont[holding answer 22 February 1989]: There have been no discussions between Treasury Ministers and farmers' representatives on this point. Under existing law, any employer who pays any tax for an employee as part of the latter's remuneration package can normally claim a deduction for tax purposes. However, an employee whose remuneration package includes the payment of any tax on his behalf would normally be taxed on the benefit.