HC Deb 09 November 1998 vol 319 cc103-4W
Mr. Webb

To ask the Chancellor of the Exchequer what rules will govern the decision as to which employer delivers the working families tax credit where an employee works for more than one employer. [58978]

Dawn Primarolo

This is one of the issues currently under discussion between Inland Revenue officials and employer representatives and decisions will be announced in due course.

Mr. Webb

To ask the Chancellor of the Exchequer what measures were taken to prevent fraud from collusion between employers and employees in designing the working families tax credit. [58977]

Dawn Primarolo

The Government recognise that most employers carry out their obligations honestly and properly. Working Families Tax Credit will build on Family Credit, but it will be administered by the Inland Revenue. The Inland Revenue has considerable experience of checking the operation of PAYE. It will use its expertise to detect and prevent collusive fraud in Working Families Tax Credit.

Mr. Webb

To ask the Chancellor of the Exchequer what assessment he has made of the effect the operation of the working families tax credit will have on the cashflow of small businesses with low-paid employees. [58974]

Dawn Primarolo

Inland Revenue officials have been consulting employer representatives, including representatives of small businesses. The effect on cash flow is one of the issues they are examining.

Smaller businesses will benefit from the proposals that, while employer payments of WFTC will normally be set off against PAYE tax and NICs deducted, employers will be able to apply to the Inland Revenue for funding if they have insufficient PAYE tax and NICs out of which to pay the tax credit.