The Government has indicated that employers will not be responsible for paying working tax credit after 5 April 2006.
The Treasury said in chapter 3 of the Budget Report: “Following consultation with representatives of employers and other interested parties, the Government will phase out the payment of Working Tax Credit via employer (PVE) between November 2005 and April 2006.
“1.2 m small businesses stand to benefit from this reform and the new tax department and employers will be issuing targeted publicity to make employees aware of the changes that will result from the phasing out.”
Andrew Goodall
Editor, TaxZone
