The Liberal Democrats have accused HMRC of losing almost £10BN of public money owing to flaws (fraud, error and overpayments) in the tax credit system.
The tax credit computer system was recently condemned by the Public Accounts Committee for suffering "the highest rate of error and fraud in central government", and is losing £1BN a year as a result of erroneous tax credit payments each year.
Shadow work and pensions secretary Danny Alexander said:
"The government's boasts about the tax credit system have been exposed as spin."
The treasury has refuted the numbers, saying they ignore the fact the that HMRC will recover the majority of overpayments and that it includes "unrelated" figures.
Maybe so, but wouldn't it save time, money and effort if these overpayments were never made in the first place?
Tax does have to be taxing.
The New Statesman, Britain's leading political magazine is delighted to announce that HMRC Is Shite has been nominated for a New Media Award in the category of Campaign For Change. The campaign for change award will go to the individual or organisation that has most effectively influenced opinions and behaviour through the use of new media technology. The winner of this award will champion a cause and provide information and tools to instigate change.
The full press release can be downloaded here.
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
I work for HMRC in one of their contact centres so would like to clear up a little myth surrounding overpayments relating to Tax Credits, if I may. The overpayments that are constantly mentioned are as a direct result of taxpayers not notifying HMRC of their change of circumstances, not an error by HMRC. If a taxpayer does not inform the HMRC that they have had a pay rise or that the costs of their childcare has decreased or stopped altogether, how the hell are we meant to know? Every single person who receives Tax Credits is sent a notice instructing them to notify HMRC if certain circumstances change. If the claimant fails to do so, it is not HMRC's fault that they have been overpaid.
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