TaxPersonal TaxThe Big Question – FDs slam tax credit fines

The Big Question - FDs slam tax credit fines

Finance directors have slammed the government’s decision to fine employers for errors when administering the controversial working families tax credit.

From next April, the new system will require employers to pay tax credits to eligible working families and disabled people through pay packets.

It has already been attacked by accountants and business groups for adding to red tape, and last week it emerged that the government would fine employers up to #3,000 for administrative mistakes.

Of the 214 FDs questioned in this week’s Accountancy Age/Reed Accountancy Personnel The Big Question, 66% said it was unfair to fine employers, with most saying the credit was the responsibility of government and not business.

Gary Brookes, of Adullum Homes, said: The government is handing its responsibility to businesses. Resources should be given to businesses of less than #1m turnover and 50 staff to cope with the extra burden.’

Barry Boddy, of printers WBF, added: ‘Sick and maternity pay is already handled by employers. It’s as if they’re handing the whole benefits system over to us.’

Less than one quarter of FDs backed the penalty. Paresh Samat, of employment and safety services specialist SBJ, said simply: ‘It’s the law.’

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

5m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter