PSI current research

Evaluating Tax Credits

Project Leader: Alex Bryson

Sponsor: Inland Revenue

Period: June 2001-March 2003

Background

Inland Revenue wish to evaluate the impact of Working Families Tax Credit (WFTC) and Disabled Persons Tax Credit (DPTC) on employers following a shift to payments-via-employer (PVE).

Study Design

A telephone survey with employers undertaken by BMRB.

Importance

The study will inform the Inland Revenue's understanding of the impact of PVE on employer costs, recruitment and earnings. As such, it will be a significant contribution to the debate about shifting away from cash benefits towards a tax credit system administered by employers.