PLEASE NOTE: Take independant legal advice before taking any actions.

PLEASE NOTE: Take independent legal advice before taking any actions. Some information may not be upto date.

The Basics: Child Tax Credit and Working Tax Credit

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.

This Blog Relates to the United Kingdom Tax Credits System.

Change The Tax Credits System so it helps Lower Income Earnings

Members of Parliament

Tax Credits are a Political Issue and at this time a General Election could be due soon. Therefore greater Pressure could be put on the Government to Change The Tax Credits System to something that helps Lower Income Earnings instead of punishing them!!

Contact your own Member of Parliament let them know that you have/are having problems

Alphabetical List of Members of Parliament

Please ONLY post United Kingdom Tax Credits issues.

Please ONLY post United Kingdom Tax Credits issues.

Tax Credit Casualties Main Site : A MUST VIEW!!! Check it our :)

Tax Credit Casualties Main Site A MUST VIEW!!! Check it Out!!! What to do, When to do it, and How to do it.


Piles of Money

Piles of Money
Biggest Tax Credits Pay out Ever, and on Time!!!

£53M BONUS FOR CIVIL SERVANTS IN TAX CREDIT FIASCO

£53M BONUS FOR CIVIL SERVANTS IN TAX CREDIT FIASCO

Not bad, pity they can not pay out Tax Credits.

Click Here for more information about how they got £53,000,000.00


Brown’s ‘incompetence’ over tax credits has cost the public £2bn

TAX CREDIT SYSTEM HAS LOST £1.74 BILLION

£6bn overpaid to tax credit claimants since 2003

HMRC slammed over tax credits bungle.

HMRC slammed over tax credits bungle.

Public Accounts Committee says £1.4bn is likely to be written off


Can I get legal aid?

Can I get legal aid?

Use the CLS Direct Legal Aid Calculator to see if you are eligible for legal aid.The CLS Direct Legal Aid Calculator allows you to find out if you could get legal aid (CLS-funded help) for a civil case.

You will be asked a series of questions about your legal problem and financial situation. For reasons of data protection, none of the information entered into the calculator is saved, so it is completely confidential and anonymous.

You can print out the results at the end for your own records.

Legal Beagles. Provide legal strategies for the self litigating consumer.

Legal Beagles. Provide legal strategies for the self litigating consumer.

With our experiences, knowledge and resources we will be at the forefront of the battles against unfair practices, whether they be from the banks (where our main battle is at the moment) or any other organisation that feels they can use unfair business practices to take money from our members.

Thursday 27 November 2008

'Diary of the Damned', (Blog).

'Diary of the Damned', (Blog), is where Tax Credit overpayment victims can speak out, using their own words, and let the world know just how really, really bad the whole Tax Credit system is!

Tell us about your views of the Tax Credits System and how it has effected you.

Monday 11 August 2008

Code of Practice 26

Code of Practice 26? (PDF Format)

What happens if we’ve paid you too much tax credit?

How tax credits hit the rocks

How tax credits hit the rocks.

With Labour all at sea and rumours of mutiny clouding round Captain Gordon Brown, is his old flagship, HMS Tax Credits, heading for the breaker’s yard? Word is that many in Whitehall now believe that this once-vaunted policy is unseaworthy – so much so that insiders expect it to be scuttled by the next government. (Meaning the Tories? “Possibly,” says one senior figure. “Or possibly by a Labour prime minister who is not Gordon Brown.”) Snippets emerging from insiders suggest tax credits were doomed to disaster from their launch five years ago.

Friday 1 August 2008

The health impact of a Tax Credit overpayment

The health impact of a Tax Credit overpayment has been known about since the 'Money With Your Name On It' days. However, the sheer number of dangerously distressed or suicidal people who are now contacting us has led to an unprecedented change to this home page. If you are severely distressed or suicidal, please remember that you are not alone. We can help and support you in your Dispute, which most of our 'members' have found helps a great deal; but please, please contact The Samaritans if you need them, and see your GP at the earliest opportunity! Please complete the survey below by clicking on just one option - no information other than your answer is collected, and you will retain complete anonymity : http://www.taxcc.org/

Treasury and HMRC discussion document, "Tax Credits:Improving Delivery and Choice".

Treasury and HMRC discussion document, "Tax Credits:Improving Delivery and Choice". (PDF format)

A £2.8 billion farce over tax credits

A £2.8, (£2800,000,000), billion farce over tax credits

When the political obituaries of Gordon Brown are written, the Kafkaesque system of tax credits that he introduced as chancellor will merit a chapter in itself. Today we report that HM Revenue & Customs (HMRC) is preparing to write off £2.8 billion mistakenly overpaid in tax credits to more than 1.5m people. Worse, evidence obtained by some of those from whom HMRC is demanding repayment reveals a chaotic, error-strewn service, capable of enormous mistakes even when repeatedly provided with accurate information by claimants.

A system supposed to help those on low incomes has turned into a nightmare. A department that specialises in retrospective taxation and harassing the law-abiding cannot keep its own affairs in order. Last year HMRC lost two discs containing bank details and National Insurance numbers of every family in Britain claiming child benefit – 25m individuals. Paul Gray, its chairman, resigned but with a big pay-off and a pension pot of more than £2m.

Bullying tax officials lose £2.8 billion

Bullying tax officials lose £2.8 billion, (£2,800,000,000)

CONFIDENTIAL tapes and internal documents have exposed bullying and bungling in Gordon Brown’s flagship tax-credit scheme that will cost the taxpayer up to £2.8 billion.

More than 1.5m people have been told that they were overpaid tax credits and should now give back the money. Tax officials told them it was their own fault and informed some victims they had no right of appeal.

However, many victims have turned the tables on the tax-man, using evidence from their own case files, obtained under data protection laws, to prove officials’ errors were to blame.

This has revealed government offices in disarray, random errors inserted by computer into claimants’ files, and officials misleading claimants about the right of appeal.

Friday 18 July 2008

UK Government May Write Off GBP5bn In Lost Tax Credits

The extent of the government's losses as a result of the ongoing tax credits fiasco may be much more severe than first thought, according to new figures published on Tuesday.

The figures show that the government overpaid GBP1.7 billion, (£1,700,000,000), in tax credits in 2005/6, bringing the grand total of overpayments since the scheme was introduced in 2004 to GBP5.7 billion.

The government is already writing off almost GBP2 billion, (£2,000,000,000) as irrecoverable. However, according to new research by the Liberal Democrat Party, an additional GBP3.6 billion has been lost through the tax credit system due to fraud, the vast majority of which is never likely to be recovered. The Lib Dems say that this brings the true total of tax credit losses to GBP9 billion,(£9,000,000,000), of which GBP5 billion will have to be written off by the government.

Lost forever, £3bn overpaid tax credits

Lost forever, £3bn, (£3,000,000,000) overpaid tax credits.

31st May 2006, 09:09 GMT

Gordon Brown's tax credits fiasco will cost the nation £3billion, according to figures due to be released today

£500m tax credits could be written off

£500m, (£500,000,000) tax credits could be written off

Up to £500 million in overpaid tax credits could have to be written off or even repaid by the Government because officials trying to recoup the money failed to follow correct procedures.
Osborne: 'this latest fiasco happened on Brown's watch'

Labour's flagship tax credit system has been mired in controversy since it emerged that millions of pounds had been paid in error. But in a major new setback last night, HM Revenue and Customs was forced to admit that overpayments to tens of thousands of households could have to be written off.

Tax Credits Explained

Tax Credits Explained

More than six million families and 600,000 workers on a low income collect tax credits, the system relaunched in 2003 by Gordon Brown to alleviate poverty. Here is a guide to the scheme.

...

History of tax credits
The original tax credit system were introduced in 1998 to encourage the unemployed back to work, with a particular focus on single mothers. In April 2003 the system was reformed with the establishment of two forms of tax credit, Working Tax Credit and Child Tax credit. Since the scheme was relaunched tax credits have become synonymous with overpayment problems.

...
History of tax credits

The original tax credit system were introduced in 1998 to encourage the unemployed back to work, with a particular focus on single mothers. In April 2003 the system was reformed with the establishment of two forms of tax credit, Working Tax Credit and Child Tax credit. Since the scheme was relaunched tax credits have become synonymous with overpayment problems.

...
Failings in the system continue. In May 2008, it was estimated that the Treasury had overpaid billions, (£1,000,000,000) of pounds in tax credits over the last four years which were unlikely to be clawed back in total by the government.

Meanwhile, low income workers and families who deserve tax credits are expected to leave billions of pounds worth of the credits unclaimed in the 2008/2009 tax year.
...

Tax credit blunders cost a billion per year

Tax credit blunders cost a billion, (£1,000,000,000) per year

The tax credits system, dogged by problems since its introduction five years ago, still pays out one billion pounds per year in wrong and fraudulent claims, a report by MPs said on Tuesday.

.....

"About two million, (2,000,000,000), families a year have been placed in debt to the government in this way since the scheme was launched," said Edward Leigh MP, chairman of the committee.

....

Incorrect payments totalled an estimated 1.04 to 1.3 billion, (£1300,000,000) pounds in 2004/05, and HMRC still has no targets in place to address the problem.

HMRC Working out other income for your tax credits claim

HMRC

Working out other income for your tax credits claim

When we work out your tax credits payments, we look at your income for the last tax year. A tax year runs from 6 April one year to 5 April the next. As well as what you earn by working you'll have to give details of all other income over £300.

£10bn lost in tax credit mistakes

£10bn, (£10,000,000,000) lost in tax credit mistakes.

Fraud and error in the tax credit system has cost the taxpayer £10bn over just four years. The amount is enough to pay for the 2012 Olympics or equal to just over 3p on income tax.

Fraud and error: Losses blamed on tax credit system.

POLL: What's your experience of tax credits?

Millions of low-income families who have made claims have been overpaid because they have not told Revenue and Customs when their earnings have increased.

....

'The figures will serve to remind families of the huge problems this project has faced in the five years it has been running. Far too many low-income families are on a financial rollercoaster because of the enormous complexity of a system that too often gives with one hand and takes away with the other.'

A total of £1.8bn was overpaid

More get tax credit overpayments

Tax credit overpayments have fallen below £2bnThe number of families given tax credit overpayments rose during the 2004/05 financial year, despite a fall in the money paid out.

A total of £1.8bn, (£1800,000,000) was overpaid in 1.96 million claims, compared to £2.2bn, (£2200,000,000) paid out in 1.88 million claims in 2003/04.

Billions of pounds have been lost in fraud and overpayment of credits since the tax credit

Billions lost in tax credit scheme. (£1,000,000,000)

The National Audit Office (NAO) has revealed that billions of pounds have been lost in fraud and overpayment of credits since the tax credit scheme was introduced in 2003. Some £13.9 billion, (£13,900,00,00), has been lost in the situation where overpayment or loss contributes to £2 billion every year, reports the Metro Newspaper.

The huge figures have prompted reaction from opposition politicians, who have called for the scheme to be abandoned. Liberal Democrat work and pensions spokeswoman Jenny Willott said:

"The amount lost is likely to keep on rising if changes are not made."Tax credits must be made simpler. We need to return fixed awards which are easy to administer."She highlighted the complexity of the tax credit system, which she said was "easily abused by fraudsters, misunderstood by claimants and mismanaged by officials".

The head of NAO has refused to give a go-ahead to the latest set of accounts but revealed a plan was in place to crack down on the errors and fraud.

House of Commons Hansard Debates for 27 Mar 2001 (pt 19)

House of Commons Hansard Debates for 27 Mar 2001 (pt 19)

However, the administration of tax credits is an increasing scandal in the tax and benefits system. In my surgery, I have to deal with more problems involving the working families ...

Tax Credit chaos getting worse not better

Tax Credit chaos getting worse not better.

John Barrett, Liberal Democrat MP for Edinburgh West, today criticised the Government over the continued failure to reform tax credits after new figures revealed the full scale of fraud and error in the system.

New figures released by the HM Revenues and Customs (HMRC) and the Public Accounts Committee revealed that an estimated £1.7 billion was overpaid and £549 million was underpaid in 2005/06. The total debt in the tax credit system has reached £6 billion (£6,000,000,000) – £0.7 of which has now been written off.

How the tax system discourages work

How the tax system discourages work

One of the great scandals of this government is how many obstacles there are to people moving up the economic ladder. The Red Book (page 62, PDF Format) reveals that more than 1.8 million,(1,800,000) people are caught in a 60 percent marginal tax rate—as they earn more they lose access to tax credits and welfare benefits and also have to pay tax on the additional income that they are earning—which is an increase of more than a million since Labour came to power. This hardly encourages people to work their way up.

Much of the blame for this falls on Gordon Brown’s absurdly complicated tax credits system. Word is that Stephen Byers plans to raise this in the Budget debate this afternoon.

Tax Credits Project in Scotland

Tax Credits Project in Scotland

This project aims to contribute to a reduction in the number of families living in poverty by maximizing the potential income available to them through the tax credit system

Tax Credits By The Maternity Alliance

Tax Credits By The Maternity Alliance
Who can claim and what for - The Maternity Alliance takes you through the benefits maze

Totally unacceptable scandal

The Tories urged the government to take action on the “totally unacceptable scandal” of error and fraud in the tax credits system.

George Osborne, the shadow chancellor said that in 2005-06 the Inland Revenue overpaid £1.7bn, (£1700,000,000) to claimants and underpaid £549m,(£549.000.000).

“That’s well over £2bn in mistaken payments that bring hardship to many hundreds of thousands of families and cost the taxpayer dearly.”

House of Commons debates. Tax Credits

House of Commons debates
Monday, 7 July 2003

Tax Credits

£1bn a year 'will always be wasted over tax credits'

£1bn a year 'will always be wasted over tax credits', £1,000,000,000

More than £1billion will be wasted on tax credits every year, the Government has admitted.
The Inland Revenue has already written off £3billion of taxpayers' money handed to families by mistake in the past three years.

EDS settles Tax Credits claim for £71m

EDS settles Tax Credits claim for £71m, £71,000,000

HM Revenue & Customs this week accepted £71.25m from Electronic Data Systems (EDS) to settle its claim for compensation for the problems caused by EDS's computerised Tax Credit administration system.

Paymaster general Dawn Primarolo announced the settlement in a written statement issued to Parliament on Tuesday, which added: "Details of the settlement are commercially sensitive and therefore bound by a legal confidentiality agreement as is normal in agreements of this nature."
When the new credits were introduced in 2003, thousands of claimants were left without payments because of flaws within the computerised processing system. According to

Parliamentary ombudsman Ann Abrahams, "systematic maladministration" resulted in difficulties for 1.9m families.

Brown’s ‘incompetence’ over tax credits has cost the public £2bn

Brown’s ‘incompetence’ over tax credits has cost the public £2bn, £2,000,000,000

Gordon Brown was accused last night of presiding over incompetence on “an industrial scale” as a damning report found that his tax credits system had cost the public almost £2 billion through overpayments, errors and fraud.

£5bn tax credits write-off looms

£5bn tax credits write-off looms. £5,000.000.000
Gordon Brown's 'shambolic' tax credits scheme has cost the taxpayer more than £5bn, new figures will show today.


GORDON BROWN: Tax credits were his flagship scheme

In the four years since the policy was introduced, the Government has already written off more than £2bn in overpayments.

At the same time the amount lost to fraud and error rose to £3bn last year. The Treasury is considering also writing off those losses, despite the cost to the public purse

Tax credits fiasco cost £6bn Working and Child Tax credits and Child Benefit Tax credits and allowances

Overhaul tax credits or miss key child poverty targets

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
Gordon Brown will miss crucial child poverty targets unless he signals, in his pre-budget report tomorrow, a complete overhaul of the troubled £14bn tax credits system, leading anti-poverty campaigners have warned the chancellor
.
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.

Oral Answers to Questions — Treasury

House of Commons debates Thursday, 29 March 2007

Oral Answers to Questions — Treasury Tax Credits

Scandal as tax credits hit poor - The Star

TENS of thousands of hard-pressed South Yorkshire families were overpaid hundreds of pounds in tax credits for the third year running, says the Government.

New Treasury figures revealed 47,700 local families were overpaid £38.1m in 2005/06 - equivalent to £798 per family. The overpayments, which have beset the scheme since its introduction in 2003, are blamed for plunging the poorest households into financial crisis.

New look Revenue/Customs saves cash

New look Revenue/Customs saves cash, just what impact will this have on those still waiting to resolve their Tax Credits??

Friday 13 June 2008

Voices of the Victims

£6,152,000,000

'Voices of the Victims' is a booklet of true stories, written by Tax Credit overpayment victims. It’s the first piece of qualitative research on Tax Credit overpayment and brings together nearly 40 cases in victims own words.

Not a 'selection' of the 'juiciest' stories, but a collection of tragic and heartbreaking truths that we collated on a first-come basis.

The 'victims' who volunteered their stories for inclusion in the booklet showed tremendous courage. Thank you!

Although the stories are tragic in themselves, an even bigger tragedy is the fact that this is only the very tip of a huge iceberg which continues to grow on a daily basis. Official HMRC figures show that, from 2003 until April 2007, there have been 7,030,000 claims overpaid by a total of £6,152,000,000. That is six billion, one-hundred and fifty-two million pounds! Statistics for 2007-2008 will probably not be released until May 2009, but you can expect the figures to increase by well over a million claimants, who have been overpaid by another one billion pounds.

The tragedies will continue to grow; lives ruined by HMRC oppression, which is backed-up by a Government in denial. Opposition MPs who attempt to get to the truth are 'misled' by evasive and convoluted answers given in Parliament, whilst the Party in power still refuse to listen - continuing to protect both their much needed 'fairy-tale' success and the Prime Minister's ego.

Download 'Voices of the Victims' here. (PDF Format)
http://www.taxcc.org/_docs/Voices%20of%20the%20Victims.pdf

Send it to your friends. Send it to your MP. Publicise it as much as you can. Tell the world!

Monday 21 April 2008

TAX CREDITS FIASCO GOES ON HAUNTING POOREST FAMILIES

TAX CREDITS FIASCO GOES ON HAUNTING POOREST FAMILIES

CASH-STRAPPED families all over Britain are continuing to face severe hardship due to the ongoing tax credits fiasco.

Gordon Brown’s flagship welfare reform, which was first introduced in 2003, pays out £17billion in tax credits to around six million families every year.

However, in 2005 the notoriously complex system was plunged into chaos after it emerged that administrative errors had led to the Government overpaying billions of pounds worth of child tax credit and working family tax credit....

Tuesday 5 February 2008

Tax credits not improving say MPs

Tax credits not improving say MPs

Not much has improved say MPs

There has been no improvement in the way the tax credit system works, says the latest report by MPs on the Public Accounts.

Their fifth report since the system started in 2003 says nearly two million families a year are still being placed in debt by tax credit overpayments.

And no targets have been put in place by HM Revenue and Customs (HMRC) to cut losses due to fraud or errors.