§ Mr. KidneyTo ask the Chancellor of the Exchequer what arrangements are in place to help with the transition from weekly to monthly payments for those recipients of Working Families Tax Credit who will receive the credit through a monthly pay packet from April. [116701]
§ Dawn PrimaroloTax credits will start being paid through the pay packet from 18 April and this will help to demonstrate the rewards of work and to make work pay for families on low incomes. Tax credits will be paid at the same intervals as pay—weekly for employees paid weekly, fortnightly for those paid fortnightly and monthly for those paid monthly.
In the first few weeks of a 26-week tax credit award, the Inland Revenue will pay the tax credit direct to the employee—either direct to a bank account or by Girocheque. These initial payments will be made fortnightly (one week in arrears and one week in advance). The guidance notes for tax credit applicants make it clear that tax credit payments by employers will be made at the same frequency as wages or salary.