§ Mr. CaplinTo ask the Chancellor of the Exchequer if the working families tax credit is to be delivered through the PAYE system by adjusting PAYE code numbers; and if he will consult employers about the workings of the system. [50366]
§ Dawn PrimaroloThe Working Families Tax Credit (WFTC) will be introduced in October 1999 and paid through the payroll from April 2000. Inland Revenue consultations, aimed at minimising any extra work for employers, are continuing. An initial conclusion is that it would not be practical to use the employee's PAYE code to pay the Working Families Tax Credit. Although much work remains to be done before the detailed shape of the new scheme is settled, the current working assumption is that employers will be notified by the Inland Revenue of the amount of WFTC due to an employee and that this will be added to the employee's pay and paid through the PAYE system.