The Cine Technician (1943 - 1945)

8 THE CINE-TECHNICIAN January — April, 1VI44 have to be deducted before the earned income allowance is calculated. Where the amount is small no adjustment is made, but it over £30 is involved the amount allowed is ninetenths of the payment, the other one-tenth representing the earned income allowance not due on these items. 12. In addition to wages some taxpayers have other items of income, but it is intended that, so far as possible, the deductions from wages will cover the total tax liability. This is done by reducing the allowances due by roughly the amount of the other income. The details are shown on the Notice of Coding in the lower part of the form. The commonest items of other income are Pensions, Parttime or Casual Earnings, and for married women, their husband's Service Pay. These items are all earned, and entitled to the Earned Income Allowance of one-tenth. So the amount of Personal and other allowances to set against them is only nine-tenths. For example, a pension of £40 a year is entitled to £4 Earned Income Allowance, leaving £3G to be wiped out by Personal Allowance. In some cases the full details will be shown, e.g., £40 less Earned Income Belief £4 = £36. In others only the £30 will be shown, but since the taxpayer usually knows what his other income is likely to be it is easy to knock off one-tenth, and see that the correct allowance has been made. 13. If the other income is unearned, e.g., Savings Bank or War Bond Interest, or property there will, of course, be no Earned Income relief. But people over 66, with under £500 a year, will be entitled to Age Allowance on these items, and that will be one-tenth dealt with in the same way as Earned Income Allowance. 14. Where both husband and wife are working, or the husband has two jobs, both over the taxable limit, a complication arises. The Tax Tables allow £165 at 6/6d. in the £ for every job from which tax is deductible. But only one lot of £165 at 6/6d. is allowable, even to a married couple. If it looks, on an estimate of the wages, that more than £165 will be charged at 6/6(1., an adjustment has to lie made so that the extra 3/6d. in the £ is collected week by week instead of piling up as a debt at the end of the year. This means reducing the allowances, and thus making more of the income chargeable. If the husband's job or his bigger one will have tax chargeable at 10/ in the £, the allowances will be reduced by £1 for every £3 due at the extra 3/6d. In other words, if on the second job a man pays £3 at 6/6d. = 19/6d. instead of £3 at 10/ = 30/-, the first job will be charged an extra 10/ to make up the difference. "Where the wife is working, this adjustment will usually only be made where the amount of income involved is over £50. In a few cases, where the first job will only be taxed at 6 6d. the adjustment will be £1 for every £2 excess, i.e., £2 at 3/6d. equals roughly £1 at 6/6d. 15. Where both husband and wife are working, or the man has two jobs, liable to tax, there will be separate Notices of Coding for each job. The main notice will show all the allowances for the year, and anything set off will be shown in the lower part. The other notice will show only the allowances due from that job. For example, a husband might get a notice showing Personal Allowance £140. Children £100, total £240, and in the deductions space "Wife's Earnings" £40. In such a case the wife's notice should show this £40 as Personal Allowance, and, of course, the £80 Wife's Earned Income Allowance. 16. Al these notices have been prepared on the latest information available. If a man hasn't sent in his Income Tax claim for allowances it's his own fault if the notice is wrong. On the other hand, he may have got married, or become a father since the form was sent in. Let the tax people know at once, either when someone calls at the works or by writing to, or calling at, the Tax Office. 17. It is just as important to notify overallowances as under-allowanees. Mistakes can occur in the best of circumstances, and this job has been done in a hurry for sixteen million codings have been made in about two months. Over-allowances mean underdeductions and a large amount of tax owing. Although this tax may be collected by increasing later deductions, it may happen that overtime will have dropped off, and under this scheme the minimum issue of wages will not apply. The idea is that within a shilling or two the correct tax is deducted each week. 18. At the bottom ot the Notice the Allowances to be set against pay are converted into a code number. A table showing the code number is printed on the notes sent with every notice. It will be seen that one code number covets every £5 or £10 of allowances, so a pound or two difference won't affeel the coding, and it's not worth arguing whether the expel or life insurance should be a small amount more. These small differences will be put right in 1945. 19. If a taxpayer's circumstances alter after he has received his coding notice he should notify the Inspector of Taxes Office at once