With Thanks to Tax Credit Casualties
Piles of Money
Biggest Tax Credits Pay out Ever, and on Time!!!
Saturday 15 December 2007
Thursday 22 November 2007
Thursday 8 November 2007
If tax credits are your salvation, what about the families they've damned?
If tax credits are your salvation, what about the families they've damned?
...
As many charities will testify, the scheme is not only complicated but has been plagued by administrative errors and computer glitches. Together, these elements have inflicted distress and frustration on thousands of families as incorrect sums of money have been both paid into - and then pulled out of - their accounts.
The struggles with tax credits are well documented and Gordon Brown's Budget last month only added fuel to the fire. His abolition of the "starter rate" 10 per cent tax band was criticised for hitting the less-well-off, who will, from next year, have to pay tax at the new basic rate of 20p on any income over their personal allowance.
The Treasury defended this move by announcing extra cash via both child tax credits (CTCs) and working tax credits (WTCs). But many question whether the revalued benefits will offset the tax changes.
...
It is now seemingly a necessity for those with incomes between £5,255 and £18,605 to get to grips with the tax credit system and claim in order to negate their losses through other tax measures," says Francesca Lagerberg of accoun- tants Grant Thornton.
...
In the 2005-06 financial year, Citizens Advice dealt with more than 150,000 problems relating to WTC and CTC. Its figures suggest one in three claimants have been overpaid - leaving many in dire straits as Revenue & Customs tries to claw back the money.
"Families are finding themselves struggling to repay large amounts without receiving proper explanations of how the liability has arisen - and without being given notice before [the debt] recovery starts," says Ms Lane. "Thou- sands of families are also being threatened with court action for the recovery of overpayments - sometimes without even knowing the amount due."
...
As many charities will testify, the scheme is not only complicated but has been plagued by administrative errors and computer glitches. Together, these elements have inflicted distress and frustration on thousands of families as incorrect sums of money have been both paid into - and then pulled out of - their accounts.
The struggles with tax credits are well documented and Gordon Brown's Budget last month only added fuel to the fire. His abolition of the "starter rate" 10 per cent tax band was criticised for hitting the less-well-off, who will, from next year, have to pay tax at the new basic rate of 20p on any income over their personal allowance.
The Treasury defended this move by announcing extra cash via both child tax credits (CTCs) and working tax credits (WTCs). But many question whether the revalued benefits will offset the tax changes.
...
It is now seemingly a necessity for those with incomes between £5,255 and £18,605 to get to grips with the tax credit system and claim in order to negate their losses through other tax measures," says Francesca Lagerberg of accoun- tants Grant Thornton.
...
In the 2005-06 financial year, Citizens Advice dealt with more than 150,000 problems relating to WTC and CTC. Its figures suggest one in three claimants have been overpaid - leaving many in dire straits as Revenue & Customs tries to claw back the money.
"Families are finding themselves struggling to repay large amounts without receiving proper explanations of how the liability has arisen - and without being given notice before [the debt] recovery starts," says Ms Lane. "Thou- sands of families are also being threatened with court action for the recovery of overpayments - sometimes without even knowing the amount due."
Overhaul tax credits or miss key child poverty targets, Brown told.
Overhaul tax credits or miss key child poverty targets, Brown told.
· Citizens Advice calls for a 'radical rethink' of system· Almost half of tax credit payments were incorrect
....
In 2004-05, almost half of all payments were incorrect. Of the nearly 6.5 million families receiving them, almost 2 million were overpaid and then forced to pay the money back, while more than 900,000 were underpaid.
· Citizens Advice calls for a 'radical rethink' of system· Almost half of tax credit payments were incorrect
....
In 2004-05, almost half of all payments were incorrect. Of the nearly 6.5 million families receiving them, almost 2 million were overpaid and then forced to pay the money back, while more than 900,000 were underpaid.
'Harsh' and 'unfair': efforts to claw back tax credit overpayments are berated.
'Harsh' and 'unfair': efforts to claw back tax credit overpayments are berated.
Gordon Brown's flagship tax credit system is under attack again, this time from the Parliamentary Ombudsman, Ann Abraham.
In her second report into the system, published on the same day as the pre-Budget report, Ms Abraham concluded that 365,000 families a year were being forced into debt in order to hand back credits that had been overpaid originally.
She branded as "harsh" HM Revenue & Customs' attempts at recovering overpayments and said they were causing "worry and anxiety to many low-income families".
...
Some 91 per cent of all complaints received by her office, she added, resulted from an "unfair and inconsistent" application of the rules on reclaiming cash.
...
Meanwhile, the charity Citizens Advice said the problems were eroding public trust in the £16bn,(£16,000,000,000.00), tax credit scheme. A survey of visitors to its bureaux found that more than half would be less likely to claim credits in future as a result of their experiences.
Gordon Brown's flagship tax credit system is under attack again, this time from the Parliamentary Ombudsman, Ann Abraham.
In her second report into the system, published on the same day as the pre-Budget report, Ms Abraham concluded that 365,000 families a year were being forced into debt in order to hand back credits that had been overpaid originally.
She branded as "harsh" HM Revenue & Customs' attempts at recovering overpayments and said they were causing "worry and anxiety to many low-income families".
...
Some 91 per cent of all complaints received by her office, she added, resulted from an "unfair and inconsistent" application of the rules on reclaiming cash.
...
Meanwhile, the charity Citizens Advice said the problems were eroding public trust in the £16bn,(£16,000,000,000.00), tax credit scheme. A survey of visitors to its bureaux found that more than half would be less likely to claim credits in future as a result of their experiences.
The intention was great but the execution is a scandal
The intention was great but the execution is a scandal.
...
The two reports – one from charity Citizens Advice and the other from Parliamentary Ombudsman Ann Abraham – paint a picture of a tax credit system that is still driving thousands of families into debt and despair. And just as depressing is that both the charity and Ms Abraham have said all this before.
...
In this case, a claimant actually called HMRC to check the accuracy of a credit award and was assured that all was fine. But later the individual was told a mistake had been made and the cash had to be repaid.
A bright spark at HMRC argued that the claimant's decision to check the award meant they could not reasonably believe it was theirs. A catch-22 worthy of the pen of Joseph Heller.
Sadly, such tactics aren't out of the ordinary as some HMRC staff look to shift the blame for mistakes on to claimants.
...
The two reports – one from charity Citizens Advice and the other from Parliamentary Ombudsman Ann Abraham – paint a picture of a tax credit system that is still driving thousands of families into debt and despair. And just as depressing is that both the charity and Ms Abraham have said all this before.
...
In this case, a claimant actually called HMRC to check the accuracy of a credit award and was assured that all was fine. But later the individual was told a mistake had been made and the cash had to be repaid.
A bright spark at HMRC argued that the claimant's decision to check the award meant they could not reasonably believe it was theirs. A catch-22 worthy of the pen of Joseph Heller.
Sadly, such tactics aren't out of the ordinary as some HMRC staff look to shift the blame for mistakes on to claimants.
Tax credit system to become such a shambles.
Scandal of tax credits system must be addressed
From the Oxford Mail, first published Thursday 1st Jun 2006.
It is scandalous that the Government has allowed the tax credit system to become such a shambles.
It was launched with good intentions - to raise the income of the lower-paid and help them enjoy a decent standard of living.
But the scheme has been dogged by administrative blunders. Latest figures show that 16,000 Oxfordshire families were overpaid by £13.1m, (£13,100,000.00), - an average of £825 each.
Meanwhile, 7,400 families in the county have been underpaid.
From the Oxford Mail, first published Thursday 1st Jun 2006.
It is scandalous that the Government has allowed the tax credit system to become such a shambles.
It was launched with good intentions - to raise the income of the lower-paid and help them enjoy a decent standard of living.
But the scheme has been dogged by administrative blunders. Latest figures show that 16,000 Oxfordshire families were overpaid by £13.1m, (£13,100,000.00), - an average of £825 each.
Meanwhile, 7,400 families in the county have been underpaid.
Government has allowed the tax credit system to become such a shambles.
It was launched with good intentions - to raise the income of the lower-paid and help them enjoy a decent standard of living.
But the scheme has been dogged by administrative blunders. Latest figures show that 16,000 Oxfordshire families were overpaid by £13.1m, (£13,100,000.00), - an average of £825 each.
Meanwhile, 7,400 families in the county have been underpaid.
...
The Government says that overpayments will be written off where its staff have made the mistake and the claimant could not have spotted the error.
But that still leaves thousands of families in suspense, worried that they might have to cut their spending to pay back the money.
HM Revenue and Customs [HMRC] says it will sue US-based services supplier EDS
HM Revenue and Customs [HMRC] says it will sue US-based services supplier EDS
Unless the supplier steps up compensation payments for failures in its IT support for tax credits, which led to tens of millions of pounds in incorrect payments to claimants.
The Revenue’s chairman Paul Gray says his officials have carefully archived “millions of relevant documents” in preparation for a court case he hopes will not happen.
......
EDS last year agreed to pay HMRC £71.25m, (£71,250,000.00) in compensation after serious problems with the tax credit computer system led directly to gross losses of £209m, (£209,000,000), for the department.
......
Editor notes:=
This seems very strange to me... The HMRC imply that they are no major problems with the Tax Credits Computer System and payments are correct accept where the clament has made an error.
Other Links:-
HMRC's settlement with EDS - House of Commons' Public Accounts Committee report
Tax Credits Fiasco costs EDS £71m - BBC online
Revenue gears up for court battle against EDS
How far is this tax fiasco down to IT?
EDS’s settlement with the government over tax credits
Compensation deal a sham says MP - Financial Times
EDS settles with HMRC for £71m - Accountancy Age
HM Revenue and Customs pays a strange compliment to its ASPIRE tax credits suppliers
HMRC attacked over EDS deal and lack of 'fair play' - Accountancy Age (2006)
MPs slam EDS compensation deal with taxman
Unless the supplier steps up compensation payments for failures in its IT support for tax credits, which led to tens of millions of pounds in incorrect payments to claimants.
The Revenue’s chairman Paul Gray says his officials have carefully archived “millions of relevant documents” in preparation for a court case he hopes will not happen.
......
EDS last year agreed to pay HMRC £71.25m, (£71,250,000.00) in compensation after serious problems with the tax credit computer system led directly to gross losses of £209m, (£209,000,000), for the department.
......
Editor notes:=
This seems very strange to me... The HMRC imply that they are no major problems with the Tax Credits Computer System and payments are correct accept where the clament has made an error.
Other Links:-
HMRC's settlement with EDS - House of Commons' Public Accounts Committee report
Tax Credits Fiasco costs EDS £71m - BBC online
Revenue gears up for court battle against EDS
How far is this tax fiasco down to IT?
EDS’s settlement with the government over tax credits
Compensation deal a sham says MP - Financial Times
EDS settles with HMRC for £71m - Accountancy Age
HM Revenue and Customs pays a strange compliment to its ASPIRE tax credits suppliers
HMRC attacked over EDS deal and lack of 'fair play' - Accountancy Age (2006)
MPs slam EDS compensation deal with taxman
Thursday 1 November 2007
Brown ‘cheats' working families
Brown ‘cheats' working families
WORKING families are being “brutally discriminated” against by the Government’s Tax Credit system, according to a damning new report.
Former Labour minister, Frank Field’s ?Reform’ thinktank has found that single parents have little incentive to form new relationships as they face losing hundreds of pounds of benefits.
WORKING families are being “brutally discriminated” against by the Government’s Tax Credit system, according to a damning new report.
Former Labour minister, Frank Field’s ?Reform’ thinktank has found that single parents have little incentive to form new relationships as they face losing hundreds of pounds of benefits.
Tax credit claw-back was illegal
Tax credit claw-back was illegal
HARD-UP workers forced to repay millions of pounds in bungled tax credits without warning are to get the cash back ? because the Government acted illegally.
Ministers failed to notify claimants in 250,000 cases over three years that they meant to claw back the cash.
...
A HM Revenue and Customs whistleblower claimed around £500million will have to be repaid, on top of a £200million bill to fix the fiasco.
HARD-UP workers forced to repay millions of pounds in bungled tax credits without warning are to get the cash back ? because the Government acted illegally.
Ministers failed to notify claimants in 250,000 cases over three years that they meant to claw back the cash.
...
A HM Revenue and Customs whistleblower claimed around £500million will have to be repaid, on top of a £200million bill to fix the fiasco.
OPFS joins call for Tax Credit overhaul
OPFS, One Parent Families Scotland.
Posted: 09.10.2007 Immediate Release
Following today's critical report into Tax Credits by the Parliamentary Ombudsman, One Parent Families Scotland have called for a major overhaul to the Tax Credit system.
"We need a simpler and fairer way of supporting families on low wages", comments Ian Maxwell, Associate Director of One Parent Families Scotland.
"We know from callers to our Lone Parent Help-line that Tax Credits are too complicated, that the paperwork is often difficult to understand, and the Tax Credit Helpline often fails to give correct answers to the more complicated questions."
"Tax Credits aren't 'fatally flawed', but unless the Government owns up to these problems and sorts them out quickly, lone parents who could use these extra payments to return to work will be deterred from even thinking about employment."
Note: Scotish Law may be different for United Kingdom Law.
Posted: 09.10.2007 Immediate Release
Following today's critical report into Tax Credits by the Parliamentary Ombudsman, One Parent Families Scotland have called for a major overhaul to the Tax Credit system.
"We need a simpler and fairer way of supporting families on low wages", comments Ian Maxwell, Associate Director of One Parent Families Scotland.
"We know from callers to our Lone Parent Help-line that Tax Credits are too complicated, that the paperwork is often difficult to understand, and the Tax Credit Helpline often fails to give correct answers to the more complicated questions."
"Tax Credits aren't 'fatally flawed', but unless the Government owns up to these problems and sorts them out quickly, lone parents who could use these extra payments to return to work will be deterred from even thinking about employment."
Note: Scotish Law may be different for United Kingdom Law.
Tax credit system "losing £1bn a year"
Tax credit system "losing £1bn a year"
£1,000,000.00
The tax credit system is making "unacceptably high" losses, according to a new report from the National Audit Office (NAO).
The study revealed that fraud and errors are costing taxpayers as much as £1bn a year.
In addition to this, £2.3bn of tax credits that were overpaid in 2003/04 were yet to be recovered by HM Revenue & Customs (HMRC) in April 2007.
Sir John Bourn of the NAO said, ’Once again, the levels of claimant error and fraud in the tax credit schemes are unacceptably high. It is important that the department now targets reductions in levels of error and fraud and considers how its compliance teams can engage more widely with tax credit claimants’.
Responding to the report, the Government said that instances of error and fraud have been falling since last year, when measures were taken to reduce the problem.
However, Shadow Chancellor George Osborne has urged Chancellor Alistair Darling to do more to tackle the issue.
£1,000,000.00
The tax credit system is making "unacceptably high" losses, according to a new report from the National Audit Office (NAO).
The study revealed that fraud and errors are costing taxpayers as much as £1bn a year.
In addition to this, £2.3bn of tax credits that were overpaid in 2003/04 were yet to be recovered by HM Revenue & Customs (HMRC) in April 2007.
Sir John Bourn of the NAO said, ’Once again, the levels of claimant error and fraud in the tax credit schemes are unacceptably high. It is important that the department now targets reductions in levels of error and fraud and considers how its compliance teams can engage more widely with tax credit claimants’.
Responding to the report, the Government said that instances of error and fraud have been falling since last year, when measures were taken to reduce the problem.
However, Shadow Chancellor George Osborne has urged Chancellor Alistair Darling to do more to tackle the issue.
Monday 29 October 2007
Court says taxpayers can sue Revenue for errors
Court says taxpayers can sue Revenue for errors
Landmark ruling that the taxman owes the victims of serious errors a duty of care could cost the Government millions
NOTE: This may not be relavant to Tax Credits
Landmark ruling that the taxman owes the victims of serious errors a duty of care could cost the Government millions
NOTE: This may not be relavant to Tax Credits
Always take Independant Legal Advice before taken any actions.
Parliamentary watchdog highlights tax credits failures
Parliamentary watchdog highlights tax credits failures.
The Liberal Democrats have cited evidence provided today by Parliament’s watchdog to an influential parliamentary committee as further proof of the need for a fundamental review of the tax credit system.
Commenting on the Parliamentary and Health Ombudsman’s evidence to the Public Administration Committee, Liberal Democrat Shadow Work and Pensions Secretary, Danny Alexander MP said
The Liberal Democrats have cited evidence provided today by Parliament’s watchdog to an influential parliamentary committee as further proof of the need for a fundamental review of the tax credit system.
Commenting on the Parliamentary and Health Ombudsman’s evidence to the Public Administration Committee, Liberal Democrat Shadow Work and Pensions Secretary, Danny Alexander MP said
£30m fraud shuts down its online application
HM Revenue and Customs (HMRC) has announced that it has shut down its online application website as a result of a £30m fraud.
(£30,000,000.00)
...
HMRC stated that the problems do not relate to issues with the IT system supplied by EDS, which last week agreed to pay compensation of £71m over problems with the Tax Credits system.
(£30,000,000.00)
...
HMRC stated that the problems do not relate to issues with the IT system supplied by EDS, which last week agreed to pay compensation of £71m over problems with the Tax Credits system.
Tax credits 'failing families' Cahnnel 4 Television
Tax credits 'failing families' Cahnnel 4 Television
The Government's tax credits scheme is causing large numbers of families considerable hardship, according to two highly critical reports.
Citizens Advice said poor administration of the system and the recovery of overpaid tax credits had led to some families living off just £56 a week plus child benefit.
In another report, a Whitehall watchdog has suggested that benefits mistakenly paid to families under the system should not be clawed back.
The Government's tax credits scheme is causing large numbers of families considerable hardship, according to two highly critical reports.
Citizens Advice said poor administration of the system and the recovery of overpaid tax credits had led to some families living off just £56 a week plus child benefit.
In another report, a Whitehall watchdog has suggested that benefits mistakenly paid to families under the system should not be clawed back.
Seamless" birth fro Tax Credits according to the Chancellor
The Government's new tax credit system for families which was meant to have a "seamless" birth according to the Chancellor, is in crisis tonight.
Three hundred thousand people who applied in good time and filled in a twelve page form are still waiting for their payments, after the Treasury asked them for more information.
The opposition described the new tax rules as a "shambles", replacing one complicated system with another.
Three hundred thousand people who applied in good time and filled in a twelve page form are still waiting for their payments, after the Treasury asked them for more information.
The opposition described the new tax rules as a "shambles", replacing one complicated system with another.
Child Tax Credit Guide. Channel 4 Television
Child Tax Credit Guide. Channel 4 Television
Nine out of 10 families with children are entitled to tax credits, but just 80% of those actually claim.
Experts are urging familes to claim what is rightfully theirs.
Nine out of 10 families with children are entitled to tax credits, but just 80% of those actually claim.
Experts are urging familes to claim what is rightfully theirs.
Family tax credit 'backfiring'
Family tax credit 'backfiring'
The government's targeted tax cuts for families are backfiring, according to a study.
Research carried out by the National Association of Citizens Advice Bureaux (NACAB) suggests that many families are losing out on other benefits when they sign up for the working families tax credit.
..
It also found that some parents were sacked from their jobs because employers believed the tax break caused them too much hassle.
The government's targeted tax cuts for families are backfiring, according to a study.
Research carried out by the National Association of Citizens Advice Bureaux (NACAB) suggests that many families are losing out on other benefits when they sign up for the working families tax credit.
..
It also found that some parents were sacked from their jobs because employers believed the tax break caused them too much hassle.
Family fears as tax credits stop
Family fears as tax credits stop
Ms Worsley said she could not get answers from the tax office.
A Folkestone mother-of-two whose tax credit payments stopped unexpectedly has said she cannot feed her family.
Sandra Worsley said her son could not attend nursery and her partner, Adrian Dove, had to cancel five direct debits after the payments stopped.
...
"When you phone the tax office, you don't get any response, and it's like banging your head against a brick wall.
Ms Worsley said she could not get answers from the tax office.
A Folkestone mother-of-two whose tax credit payments stopped unexpectedly has said she cannot feed her family.
Sandra Worsley said her son could not attend nursery and her partner, Adrian Dove, had to cancel five direct debits after the payments stopped.
...
"When you phone the tax office, you don't get any response, and it's like banging your head against a brick wall.
Benefits & tax credits: Your questions
Benefits & tax credits: Your questions
Are you getting all the benefits you are entitled to?
BBC Radio 4's Money Box Live was broadcast on Monday, 16 April 2007 at 1502 BST.
Programme transcript (69 KB)
Are you getting all the benefits you are entitled to?
BBC Radio 4's Money Box Live was broadcast on Monday, 16 April 2007 at 1502 BST.
Programme transcript (69 KB)
Ombudsman report Getting it Wrong.
Ombudsman report Getting it Wrong. (PDF format)
New rules ave been added aat the bottom in response to the Ombudsman's recent damning report; Getting it Wrong.
Friday 26 October 2007
Institute for Fiscal Studies. Tax Credits
Institute for Fiscal Studies. Tax Credits
Researchers at IFS have analysed and commented on changes to in-work benefits (now delivered through tax credits) in the UK since the 1980s.
More recently, they have closely monitored the development, introduction and emerging outcomes of the child tax credit and working tax credit, introduced in April 2003.
They have also examined the implications of the current government's child poverty target for the generosity of the child tax credit.
Researchers at IFS have analysed and commented on changes to in-work benefits (now delivered through tax credits) in the UK since the 1980s.
More recently, they have closely monitored the development, introduction and emerging outcomes of the child tax credit and working tax credit, introduced in April 2003.
They have also examined the implications of the current government's child poverty target for the generosity of the child tax credit.
30 second guide to… Dividend tax credit
30 second guide to… Dividend tax credit
The Daily Mail City's team take a look at the decision in 1997 that has hurt UK pensions ever since – and is now doing the same to Gordon Brown.
Gordon Brown used his first Budget to launch the most ruthless pensions raid since Robert Maxwell's attack on the Mirror Group funds.
His high-handed move looked savvy at the time, because it delivered a £5bn fillip to the public finances.
But given the storm that has now erupted - just as he prepares to assume the Labour leadership - he may be having second thoughts.
The Daily Mail City's team take a look at the decision in 1997 that has hurt UK pensions ever since – and is now doing the same to Gordon Brown.
Gordon Brown used his first Budget to launch the most ruthless pensions raid since Robert Maxwell's attack on the Mirror Group funds.
His high-handed move looked savvy at the time, because it delivered a £5bn fillip to the public finances.
But given the storm that has now erupted - just as he prepares to assume the Labour leadership - he may be having second thoughts.
Credit Fraud Costs Taxpayers £1bn
Credit Fraud Costs Taxpayers £1bn Updated: 13:36, Thursday July 12, 2007
(£1,000,000,000.00)
Taxpayers are having to pay out more than £1bn a year because of fraud and mistakes in the tax credit system.
The scale of the losses was "unacceptably high", said the National Audit Office.
(£1,000,000,000.00)
Taxpayers are having to pay out more than £1bn a year because of fraud and mistakes in the tax credit system.
The scale of the losses was "unacceptably high", said the National Audit Office.
Tax credit payout joy
Tax credit payout joy
A RELIEVED Scarborough mother and her family are facing a better Christmas after receiving almost £1,000 from the tax credit system. Katrina Blackmore has thanked the Evening News and Scarborough MP Robert Goodwill for their intervention and the Homeless Support charity for providing food.
A RELIEVED Scarborough mother and her family are facing a better Christmas after receiving almost £1,000 from the tax credit system. Katrina Blackmore has thanked the Evening News and Scarborough MP Robert Goodwill for their intervention and the Homeless Support charity for providing food.
Tax credit fraud could total £50m
Tax credit fraud could total £50m
(£50,000,000.00)
David Hencke, Westminster correspondent. Friday June 9, 2006 Guardian Unlimited
Supermarket groups and large manufacturers are now being targeted by organised identity theft gangs as part of a growing tax credit fraud scandal, Guardian Unlimited has learnt.
The scale of the fraud could be 10 times higher than previously thought - at £50m rather than the £5m figure disclosed this week by Sir John Bourn, the comptroller and auditor general.
HM Customs and Excise tax credit fraud strategy board is currently overseeing 40 separate investigations into organised tax credit fraud - most of them in the private sector.
(£50,000,000.00)
David Hencke, Westminster correspondent. Friday June 9, 2006 Guardian Unlimited
Supermarket groups and large manufacturers are now being targeted by organised identity theft gangs as part of a growing tax credit fraud scandal, Guardian Unlimited has learnt.
The scale of the fraud could be 10 times higher than previously thought - at £50m rather than the £5m figure disclosed this week by Sir John Bourn, the comptroller and auditor general.
HM Customs and Excise tax credit fraud strategy board is currently overseeing 40 separate investigations into organised tax credit fraud - most of them in the private sector.
Tax credit overpayment write-off denials 'a scandal'
Tax credit overpayment write-off denials 'a scandal'
HM Revenue & Customs' (HMRC) rejection of requests to have tax credit overpayments written off even though it was responsible for the errors is a 'scandal', a tax body has claimed.
It was revealed last month that the Revenue has dismissed the requests of two-thirds of families to keep overpayments because they occurred as a result of mistakes by the government department.
It is believed the rejections occurred due to HMRC's decision to reintroduce its 'reasonableness test' when assessing overpayments. Under the test, overpayments are only written off if claimants can demonstrate that HMRC was to be blame and it was reasonable for the claimant to have believed their payments were correct.
But the Low Incomes Tax Reform Group (LITRG) said the process is unfair and an independent review of the estimated 100,000 dismissed claims should take place.
More information
HM Revenue & Customs' (HMRC) rejection of requests to have tax credit overpayments written off even though it was responsible for the errors is a 'scandal', a tax body has claimed.
It was revealed last month that the Revenue has dismissed the requests of two-thirds of families to keep overpayments because they occurred as a result of mistakes by the government department.
It is believed the rejections occurred due to HMRC's decision to reintroduce its 'reasonableness test' when assessing overpayments. Under the test, overpayments are only written off if claimants can demonstrate that HMRC was to be blame and it was reasonable for the claimant to have believed their payments were correct.
But the Low Incomes Tax Reform Group (LITRG) said the process is unfair and an independent review of the estimated 100,000 dismissed claims should take place.
More information
Overpaid Tax Credits
Overpaid Tax Credits
Do you have to Repay?
What should you do?
Hardship
Paying Back an Overpayment
Help and Advice
This webpage tells you what to do if you agree that you have been overpaid but do not think that you should have to pay it back.
Do you have to Repay?
What should you do?
Hardship
Paying Back an Overpayment
Help and Advice
This webpage tells you what to do if you agree that you have been overpaid but do not think that you should have to pay it back.
Wednesday 24 October 2007
Working Family Tax Credit: Adverts about Tax Credits
Working Family Tax Credit: Adverts about Tax Credits
Includes warning adverts, information adverts, etc..
Includes warning adverts, information adverts, etc..
Half of tax credit claimants “less likely to claim in future”
Half of tax credit claimants “less likely to claim in future” – Citizens Advice survey
Problems with the tax credits system are causing a crisis of confidence among those who rely on them most, with almost half the respondents in a new Citizens Advice survey saying they would be less likely to claim them in future as a result of their experiences. Problems with overpayments were the most significant factor influencing their decision.
In the national charity’s online survey findings published today, 86% said tax credits were an important or very important part of their income, essential to meet mortgage and childcare costs. But one in four said their experiences made them less likely to claim again in future, and a quarter said they would definitely not want to claim again.
Of those who said they would continue to claim, many comments suggested they would do so reluctantly, feeling they had no choice, despite the stress and uncertainty they had experienced, as they needed the money to survive.
Problems with the tax credits system are causing a crisis of confidence among those who rely on them most, with almost half the respondents in a new Citizens Advice survey saying they would be less likely to claim them in future as a result of their experiences. Problems with overpayments were the most significant factor influencing their decision.
In the national charity’s online survey findings published today, 86% said tax credits were an important or very important part of their income, essential to meet mortgage and childcare costs. But one in four said their experiences made them less likely to claim again in future, and a quarter said they would definitely not want to claim again.
Of those who said they would continue to claim, many comments suggested they would do so reluctantly, feeling they had no choice, despite the stress and uncertainty they had experienced, as they needed the money to survive.
Payout every 15 minutes in Revenue's tax credit chaos
Payout every 15 minutes in Revenue's tax credit chaos By Alison Steed
Last Updated: 12:24am GMT 19/11/2005
Compensation is being paid every 15 minutes that the Tax Credit helpline is open by HM Revenue & Customs to those embroiled in the Government's Tax Credit fiasco.
In less than two years, the Revenue has been forced to make 31,504 compensation payments because of poor service. The figures were revealed by Dawn Primarolo, the paymaster general, in response to a Parliamentary question by David Laws, the Lib Dem's spokesman on work and pensions.
The disclosure this week came shortly after figures revealed that the Child Support Agency had made 35,000 compensation payments in four years.
Last Updated: 12:24am GMT 19/11/2005
Compensation is being paid every 15 minutes that the Tax Credit helpline is open by HM Revenue & Customs to those embroiled in the Government's Tax Credit fiasco.
In less than two years, the Revenue has been forced to make 31,504 compensation payments because of poor service. The figures were revealed by Dawn Primarolo, the paymaster general, in response to a Parliamentary question by David Laws, the Lib Dem's spokesman on work and pensions.
The disclosure this week came shortly after figures revealed that the Child Support Agency had made 35,000 compensation payments in four years.
Q&A: Tax credit problems. Tips and Advice.
Q&A: Tax credit problems
Many people have been overpaid tax credits.
The tax credit system has been criticised for "completely unacceptable" errors, with one third of recipient families having been overpaid, according to a new report.
Many people in receipt of tax credit have told the BBC News website that they are still having problems - and are becoming increasingly frustrated and, in some cases, even desperate.
BBC News website offers some guidance.
Many people have been overpaid tax credits.
The tax credit system has been criticised for "completely unacceptable" errors, with one third of recipient families having been overpaid, according to a new report.
Many people in receipt of tax credit have told the BBC News website that they are still having problems - and are becoming increasingly frustrated and, in some cases, even desperate.
BBC News website offers some guidance.
Payout hope for tax credit victims
People who run up phone bills or bank charges because of delays in tax credit payments could get compensation.
The government has told BBC News Online that claims can be made within the Inland Revenue's standard complaints procedure.
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But a separate scheme to compensate people who have suffered because of tax credit delays has been ruled out.
The Inland Revenue scheme is for people who have suffered worry, distress and incurred "reasonable costs" because of Revenue mistakes - but the payments are not automatic.
The government has told BBC News Online that claims can be made within the Inland Revenue's standard complaints procedure.
~~~
But a separate scheme to compensate people who have suffered because of tax credit delays has been ruled out.
The Inland Revenue scheme is for people who have suffered worry, distress and incurred "reasonable costs" because of Revenue mistakes - but the payments are not automatic.
Tuesday 23 October 2007
The Employment Tax Credit and the future of in-work support.
The Employment Tax Credit and the future of in-work support.
From 2003, the Government plans to introduce the Employment Tax Credit, to extend help to a wider range of individuals and couples with earnings from work who are nonetheless living on low incomes. What place is there for such in-work supplements in tackling poverty and promoting opportunity?
The Joseph Rowntree Foundation
From 2003, the Government plans to introduce the Employment Tax Credit, to extend help to a wider range of individuals and couples with earnings from work who are nonetheless living on low incomes. What place is there for such in-work supplements in tackling poverty and promoting opportunity?
The Joseph Rowntree Foundation
Monday 22 October 2007
The impact of tax credits on mothers’ employment
The impact of tax credits on mothers’ employment (PDF format)
Provided by The Joseph Rowntree Foundation
one of the largest social policy research and development charities in the UK
Provided by The Joseph Rowntree Foundation
one of the largest social policy research and development charities in the UK
Thursday 18 October 2007
Tuesday 16 October 2007
Here are some relavant links
Here are some relavant links
Here's a Must Read, in my own view. It gives a Good insight into the Tax Credits System (This is in PDF format).
Overpayment of tax credits (This is in PDF format).
Explanatory Notes to Tax Credits Act 2002
Working Families Tax Credit Calculator
Jobcentre Plus - Allowances and Benefits Disabled Persons Tax Credit
HMRC ‘BLAME TAX CREDIT MISTAKES ON CLAIMANTS’
Google Search on Tax Credits Scandal
A Typical Users Experience
(More about PDF)
Here's a Must Read, in my own view. It gives a Good insight into the Tax Credits System (This is in PDF format).
Overpayment of tax credits (This is in PDF format).
Explanatory Notes to Tax Credits Act 2002
Working Families Tax Credit Calculator
Jobcentre Plus - Allowances and Benefits Disabled Persons Tax Credit
HMRC ‘BLAME TAX CREDIT MISTAKES ON CLAIMANTS’
Google Search on Tax Credits Scandal
A Typical Users Experience
(More about PDF)
Tax Credit Scandal
Tax Credit Scandal.
This Blog is for people whom have/are suffiring because of the Tax Credit System.
It covers both Working Tax Credits and Child Tax Credits.
The posts on this page are for users to post there own expreinces of the Tax Credits System.
PLEASE NOTE: Take independant legal advice before taking any actions.
Basics:
Child Tax Credit and Working Tax Credit were introduced in April to replace Working Families' Tax Credit which many families relied upon to make ends meet.
HM Revenue & Customs: Tax Credits The HM Revenue & Customs Tax Credit pages featuring information on the tax credits available to you.
What do to think about the Tax Credit System?
This Blog is for people whom have/are suffiring because of the Tax Credit System.
It covers both Working Tax Credits and Child Tax Credits.
The posts on this page are for users to post there own expreinces of the Tax Credits System.
PLEASE NOTE: Take independant legal advice before taking any actions.
Basics:
Child Tax Credit and Working Tax Credit were introduced in April to replace Working Families' Tax Credit which many families relied upon to make ends meet.
HM Revenue & Customs: Tax Credits The HM Revenue & Customs Tax Credit pages featuring information on the tax credits available to you.
What do to think about the Tax Credit System?
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