§ Mr. Tim Smith
asked the Chancellor of the Exchequer why those taxpapers with PAYE codes prefixed F and who, therefore, pay high marginal rates of tax have been placed at the end of the queue for recoding.
§ Mr. Robert Sheldon
All PAYE codes, including prefix F codes, were revised in May, where appropriate, to give effect to the increases in personal allowances. Prefix F codes also need to be revised to take account of the new lower rate and, prior to the amendment to the basic rate made in Finance Bill Committee, it was intended that this should be done in time for the new codes to be operated from 13th July, when the new tax tables giving the benefit of the lower rate to taxpayers with other codes are to be brought into use. But yet another revision to these codes would be needed to take account of any reduction in the basic 155W rate which might be required on enactment of the Finance Bill. To avoid the extra work which this would impose on tax offices which are already heavily burdened, the revision of the F codes has been deferred. It will, however, be completed as soon as possible once the Finance Bill becomes law.