Timing It Right? Tax Credits and How to Respond to Income Changes

In April 2003, two new income-tested tax credits were introduced in the UK: the Child Tax Credit (for families with children) and the Working Tax Credit (for low-waged working people). This report, written by experts from Australia, Canada and the UK, compares the UK method for assessing entitlement to tax credits with the methods used in Australia and Canada. It explores the evolution and structure of the Australian and Canadian systems, how responsive they are to changes in circumstances of the recipient, and what implementation problems occurred.;"Timing it Right?" reviews the British proposal in terms of its structure, its responsiveness to change, and whether planners have learned the lessons of the Australian and Canadian experiences. It considers the strengths and weaknesses of each system directly and focuses on the practical issues involved in the delivery of tax credits.