§ Mr. WebbTo ask the Chancellor of the Exchequer by what mechanism recipients of the proposed child tax credit and working credit will be able to recover underpayments of tax credit which arise through an over-estimate by the claimant of his income in the current year. [26794]
§ Dawn Primarolo[holding answer 14 January 2002]: If an underpayment of tax credit should arise because of a difference between estimated and actual income for a 251W tax year, it would be identified as part of the end of year process of finalising claims and paid out by the Inland Revenue.
§ Mr. WebbTo ask the Chancellor of the Exchequer in cases where assessment for tax credit purposes is based only on that part of the increase in current year income which exceeds a threshold, whether subsequent assessments will take account of that part of increased income below the threshold. [26798]
§ Dawn Primarolo[holding answer 14 January 2002]: Decisions on what regulations to propose under the provisions of Clause 7(3) of the Tax Credits Bill have not yet been taken. But if it were the case that part of a rise in income in the current tax year, by comparison with the previous year, were to be left out of account in assessing tax credits for the current year, the full amount of the income would be relevant in deciding tax credit entitlement in the following tax year.