The Budget and Tax Credits
|Category|| 2002 Releases
|Author||Lisa Drackley - Communication
The CIOT's concerns about the new tax credit regime.
Contacts: John Whiting: 020 7804 4422 (office); 07710 027 595 (mobile)
Press Office: Viv Rees: 020 7245 4109 (office); 07900 220887 (mobile)
The Chartered Institute of Taxation, CIOT, remains concerned about the burdens created by the new tax credit regime and whether there is proper time available before their introduction to iron out all the practical issues.
John Whiting, CIOT President said:
“The Chancellor has made clear his intention to create a family friendly tax system based on the integration of tax and benefits. This represents a fundamental change from the current system for tax and NI and its relation to benefits.
Some of the CIOT’s concerns are:
- The interaction between the tax and benefits systems will cause confusion amongst families who want to manage their financial housekeeping
· The new Child Tax Credit system will now be assessed on the joint income of the couple. Partners will have to discuss their financial affairs with each other if they want to get Child Tax Credits. This could erode the principle of independent taxation
· The time limit for claims, particularly in the first year, is too short with no real retrospective claims allowed.
John Whiting continued:
“The key to these new credits is clearly proper and full information to potential claimants in an accessible manner. People need to know whether they are eligible and when they need to claim.
“We look forward to participating in discussions and will submit observations when the tax credits are introduced in 2003.”