An extra £50 discount for small employers paying Working Families' Tax Credit and Disabled Person's Tax Credit to their employees has been announced in the Budget. Small employers with tax credit cases in 2000/2001 who file their PAYE end of year returns over the Internet and pay any tax due electronically will receive the discount.
This is an addition to the £50 discounts for VAT and PAYE announced on 16 February to encourage small businesses to embrace Internet technology. Total discounts for small businesses of up to £150 now exist.
The PAYE and tax credit discounts will also be available to small employers who use
an Internet payroll service.
This improvement is part of the Government's aim that by 2002, 25% of transactions with government should be capable of being done electronically.