4.Both the tax credits will be introduced from 5 October 1999. Initially they will be paid by the Inland Revenue direct to recipients. In the case of employees, however, from 6 April 2000 the credits will, where appropriate, be paid by employers in wage packets. The Act includes the necessary provision for this. The self-employed will continue to receive their tax credits direct from the Inland Revenue.
5.The level of the tax credits will be set by statutory instrument.
6.The Working Families’ Tax Credit will go to around 1½ million families at a cost of around £4.9 billion.
Summary and Background The new tax credits