HC Deb 08 January 2001 vol 360 cc457-8W
Mr. Webb

To ask the Chancellor of the Exchequer, pursuant to his answer of 18 December 2000,Official Report, column 85W, on the children's tax credit, what plans he has to ensure that the credit is received by taxpayers with children who have not returned the claim form which he issued; and if he will estimate the latest date by which a claim would need to be made in order for the credit to be paid through the PAYE system at the start of the 2001–02 tax year. [144357]

Dawn Primarolo

The Inland Revenue is planning further publicity in the new year to remind people to send in a claim quickly if they want it to be included in their tax code for April. Claims submitted to the Revenue by the end of February should enable them to give employers sufficient time to use the revised codes at the start of the tax year. However, later claims will be backdated to the start of April 2001 and people have until 31 January 2008 to claim the allowance under the normal tax rules.

Self-employed taxpayers can claim in the usual way when they receive their tax return for the year beginning April 2001.

Mr. Webb

To ask the Chancellor of the Exchequer if he will estimate the cost to the Exchequer of introducing a tax credit for all taxpayers paying income tax at either the lower or the standard rate, set at £1,000 and restricted to 10 per cent. [144356]

Dawn Primarolo

The full-year cost of introducing a non-repayable tax credit set at £1,000 and restricted to 10 per cent. for all taxpayers paying income tax only at the basic and/or starting rate of income tax is estimated to be £2.4 billion in 2000–01. This estimate is based on the survey of personal incomes and is consistent with the November 2000 pre-Budget report.