Gordon Brown's much derided Tax Credit system, mismanaged by HMRC, is still the subject of scorn and dismay.
The Public Accounts Committee has stated that overpayments (which were £7.3BN between 2003 and 2007) are still running at a staggering £1BN per annum. Needless to say the hapless recipients of the overpayments are then asked to repay them.
Edward Leigh MP, Chairman of the Public Accounts Committee told the BBC:
"It is distressing that many of the families that have to make repayments to the department, on average £770 for a single year, are highly vulnerable and struggling in the economic downturn."
Adding:
"The department has not given claimants the support they need in making claims and reporting changes in circumstances, and it has assumed too much on the part of claimants in their understanding the tax credits system."
The Committee also noted that the PAYE income tax system had a backlog of 16M cases, as at March 2008, which need manual checks to ensure they are accurate.
Tax does have to be taxing.
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"The department has not given claimants the support they need in making claims and reporting changes in circumstances, and it has assumed too much on the part of claimants in their understanding the tax credits system."...
ReplyDelete...and it has assumed too much on the part of Senior Management in their understanding the tax credits system.