§ Mr. WillettsTo ask the Chancellor of the Exchequer for what reason it was decided to base entitlement to the child tax credit and the working tax credit on current year income. [24232]
§ Dawn PrimaroloNo such decision has been taken. It has been decided that tax credits will be based on the income of a tax year. The Tax Credits Bill allows for a variety of approaches to responding to changes in income as between one year and the next.
§ Matthew TaylorTo ask the Chancellor of the Exchequer what percentage of total compliance costs for employers the reduction listed in paragraph 2.20 of the Inland Revenue Regulatory Impact Assessment for the new tax credits is; and if he will make a statement. [24129]
§ Dawn PrimaroloThe estimated recurrent compliance costs to business of the working families tax credit and the disabled person's tax credit were set out in paragraph 44 of the Regulatory Impact Assessment for the Tax Credits Act 1999 and accompanying regulations (December 1999).
§ Mr. WillettsTo ask the Chancellor of the Exchequer if he will place in the Library(a) a summary and (b) a complete set of the responses to the Inland Revenue consultation paper, "New Tax Credits". [24241]
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§ Dawn PrimaroloThe Treasury issued a summary of the responses to the Inland Revenue's consultation paper, "New Tax Credits: supporting families, making work pay and tackling poverty" (July 2001). This summary was attached to a Treasury press notice of 29 November 2001 (no. 132/01). A copy has been placed in the House of Commons Library. A complete set of responses, except for those we have been asked to keep confidential, has also been placed in the Library.
§ Mr. WillettsTo ask the Chancellor of the Exchequer what the minimum age of working tax credit recipients will be. [24233]
§ Dawn PrimaroloWorkers with a disability or with children will be eligible for the working tax credit from the age of 16. The minimum age for those without children or a disability is to be set at 25, since those aged 25 or over are more likely to face severe financial barriers to work or suffer persistent poverty.
§ Mr. WillettsTo ask the Chancellor of the Exchequer whether entitlement to the child tax credit and the working tax credit will be based on net income. [24231]
§ Dawn PrimaroloNo. The Government have decided, in the light of representations received in response to consultation, that entitlement to the working tax credit and the child tax credit will be based on gross income.