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.

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.

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.

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

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.

Working Family Tax Credit: Adverts about Tax Credits

Working Family Tax Credit: Adverts about Tax Credits

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.

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.

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.

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.