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The misunderstandings and complications that surround the new system of tax credits are unravelled by ELIZABETH LATHWOOD.
WE ARE BEGINNING to see more articles about tax credits as the April 2003 commencement date looms closer. This article is intended to help with what advisers could be doing now and what they will need to be doing once the system is up and running. There is no doubt that such a new system will have its teething troubles, but part of the difficulty with any new system is learning it, and there do seem to be a few misconceptions abounding in the press.
The effect of the rather disproportionate increase in the Class 4 National Insurance charge this year, with its consequent impact on payments on account under self assessment was highlighted by John Newth in his article 'Another Stealth Tax' in Taxation, 31 May 2001.
