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Treasury

Answer

Mr. Portillo: To ask the Chancellor of the Exchequer (1) how long it has taken on average for a business to be reimbursed by the Inland Revenue those moneys paid to employees as working family tax credits; [145460] (2) what representations he has received from Manchester Chamber of Commerce and Industry about delays in reimbursement to businesses of moneys owed by the Inland Revenue relating to payment of the working families tax credit; and if he will make a statement on the Inland Revenue's reimbursement policy. [145534] Dawn Primarolo: [holding answer 17 January 2001]: The scheme for paying tax credits through the payroll is designed to ensure that employers have the money they need to pay the tax credit at the right time. Employers who receive notification to pay tax credits can apply for advance funding from the Inland Revenue if they think that they will have to pay out more in tax credits than the PAYE tax, NICs and student loan deductions which they have to pay to the Inland Revenue for the same period. As long as the application for funding is made at least nine working days before the first tax credit payment is due the Inland Revenue should be able to get funding to employers at least three days in advance of the first day on which they will pay tax credits. I have seen a copy of representations made by the Manchester Chamber of Commerce and Industry to David Irwin of the Small Business Service who will be replying directly.

Secondary information

Type

Written question

Reference

361 c425-6W;361 c426W; 145460;145534

Session

2000-01

Subjects

Administrative delays Inland Revenue Payments Repayments Working families tax credit

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk