Commentary on Sections Part 1: Tax Credits Section 25: Payments of working tax credit by employers
105.Section 25 gives the Board power to make regulations requiring employers to pay working tax credit, or prescribed elements of working tax credit, to their employees.
106.The regulations may, in particular, require employers to:
	make payments of working tax credit as notified by the Board;
	produce information or evidence to verify payments of working tax credit; and
	provide employees with information (for example, on their pay statements) relating to the tax credit paid to them.
107.The regulations may also provide for:
	the payment of working tax credit to employees by the Board in certain circumstances;
	the funding by the Board of employers who are notified that they have to pay working tax credit. This funding may be provided direct or through set-off against income tax, national insurance contributions and student loan deductions for which the employer is accountable to the Board;
	recovery of overpayments of funding to employers;
	calculation and payment of interest on amounts due to or from the Board;
	appeals relating to matters which are covered in the regulations.
108.This section also allows the Board to exercise its information powers under section 20 of the Taxes Management Act in relation to employers' compliance with regulations made under this section. Section 20 of the Taxes Management Act 1970 allows an inspector to require the production of documents. Those powers are applied with appropriate modifications, to treat references to employers and to tax liabilities as though they were references to employers and payments of working tax credit. Section 20B, which places restrictions on this power, and section 20BB, which makes it an offence to falsify or destroy documents required, are also applied.