§ Mr. Donald AndersonTo ask the Chancellor of the Exchequer if he will list the procedures involved in relation to the working families tax credit when a company becomes insolvent; and what targets the Inland Revenue has for resolving cases which arise in this area within a particular time. [129405]
§ Dawn PrimaroloWhen a company that is paying tax credits to one or more of its employees becomes insolvent, the Inland Revenue will pay the tax credits direct to the employee for the remainder of the tax credit award period. The system is designed to ensure that employees of the insolvent company continue to receive their tax credit payments on time.