01/03/2006

Employers reminded to stop paying Working Tax Credit

HM Revenue & Customs (HMRC) have reminded employers that they must stop paying Working Tax Credit via their payroll by the end of this month.

Since its introduction in April 2003, Working Tax Credit has been paid via employers to supplement the wages of people on low incomes.

However, as part of the Government's commitment to remove regulatory burdens on business, HMRC will now be paying all claimants directly from April.

A spokesperson for HM Revenue & Customs said: "Employers should have received a final 'stop notice' for each of their employees in receipt of Working Tax Credit.

"If they have not received a notice, they should contact HMRC immediately to arrange a stop date.

"On no account should employers make Working Tax Credit payments to employees after 31 March 2006."

If employers' payroll arrangements mean they would not normally pay Working Tax Credit for March until April, they can contact HMRC now to arrange an earlier stop date.

Employers needing help or more information can telephone 08457 143 143.

Employees with questions about tax credits can telephone the Tax Credits Helpline on 0845 300 3900.

The Government announced in Budget 2005 that payment of Working Tax Credit via employer would be phased out between November 2005 and April 2006 and replaced by direct payment by HMRC.

(SP/GB)

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