Working Families Tax Credit (Hansard, 13 February 2001)

§ Mr. Win Griffiths
To ask the Chancellor of the Exchequer (1) what estimate he has made of the administrative costs of implementing the Working Families Tax Credit to(a) businesses and (b) the Treasury; [149859]
(2) what estimate was made of the costs of administering the working families tax credit within the Inland Revenue. [149860]

§ Dawn Primarolo
Estimates of the costs to employers of operating the Working Families Tax Credit and the Disabled Persons' Tax Credit are given in paragraphs 40–46 of the regulatory impact assessment for the Tax Credits Bill 1999.
The cost to Inland Revenue of managing and paying these tax credits for the six months to shown in note 3 to the trust account, on page 83 of Inland Revenue's annual report for the year ending 31 March 2000.
Both documents are available in the Library of the House.

§ Ms Osborne
To ask the Chancellor of the Exchequer how many(a) widows and (b) widowers with care of their children are in receipt of the Working Families Tax Credit. [149856]

§ Dawn Primarolo
This information is not available. The application form for the Working Families Tax Credit (WFTC) does not ask whether the applicant is a widow or widower.

§ Mr. Maclean
To ask the Chancellor of the Exchequer what representations he has received regarding the Inland Revenue's guidance on software for administering the Working Families Tax Credit; and what assessment he has made of the effectiveness of these guidelines in dealing with circumstances where credits cease. [149370]

§ Dawn Primarolo
The Inland Revenue produces specific guidance to payroll software developers which includes guidance on the Working Families Tax Credit. I am not aware of any representations on this matter.

§ Mr. Maclean
To ask the Chancellor of the Exchequer how many companies have reported(a) difficulties in operating the Working Families Tax Credit and (b) overpayment of tax and national insurance as a result of the Working Families Tax Credit [149375]

§ Dawn Primarolo
The Inland Revenue provides detailed guidance to employers and the majority of them are paying tax credits to their employees correctly.

§ Mr. Maclean
To ask the Chancellor of the Exchequer what measures he is taking to ensure that jobseekers in receipt of Working Families Tax Credits are not disadvantaged in jobseeking as result of on-costs associated with their employment. [149372]
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§ Dawn Primarolo
Payment of tax credits by employers reinforces the link between tax credits and the rewards of the work.
In the January 2001 "Employer's Bulletin", sent to all employers, employers were advised that they must not charge their employees for paying tax credits through the payroll.

§ Mr. Maclean
To ask the Chancellor of the Exchequer what assessment he has made of the impact of the Working Families Tax Credit on recruiting intentions among small and medium-sized enterprises. [149373]

§ Dawn Primarolo
The Working Families Tax Credit is just one element in a comprehensive programme of tax and benefit reform to help make work pay and provide incentives to move up the earnings ladder. Other elements include reductions in income tax and reforms to national insurance contributions. These measures are underpinned by the national minimum wage which guarantees fair minimum standards of pay.
Combined with policies to move people closer to the labour market and make them more effective at competing for jobs, the Government's tax and benefit reforms will help increase the effective supply of labour.