Tax credits and employers: Primarolo under pressure

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Consultation on the payment of working tax credit by employers, including the promised move to direct payment by the Inland Revenue, has "ceased entirely", according to tax and business representatives.

A reliable source suggested today that the Government did not want to talk about the issue until after the general election. But the Treasury told TaxZone that consultation with employer representatives is "certainly not over".

Writing on behalf of itself and eight other bodies including the ICAEW Tax Faculty and the CBI, the Chartered Institute of Taxation told paymaster general Dawn Primarolo on 16 February that employers needed notice of either the continuation of WTC Payment via Employer (PVE) into 2005/06 or a "swift announcement" of implementation of the phasing out of PVE.

In last year'...

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