HMRC Promises "Gold Command" For Tax Credits

Jon Thompson's Gold Command Uniform

HMRC has promised to address failings that led to thousands of benefit recipients having their tax credits withdrawn.

In a letter to the Work and Pensions select committee HMRC chief executive Jon Thompson promised to make a number of changes, including: reviewing and revising all letters; prompting customers to respond to HMRC enquiries; making it easier for taxpayers to engage with HMRC; and the rapid reinstatement of payments.

Quoted by the FT:

"One of the key learning points I reported to the Committee in October was that critical performance issues were not escalated to the right levels quickly.

To ensure this does not happen again, the 2017 HRR process will be governed through a ‘Gold Command’ structure alongside the broader Renewals programme, to monitor performance closely and ensure issues are escalated in real time.

I believe we have listened to the comments of our customers and stakeholders and addressed the core issues, whilst continuing to fulfil our responsibilities to reduce error and fraud in the welfare system."

What the fark is a "Gold Command" structure I hear you ask?

A gold–silver–bronze command structure is used by emergency services of the United Kingdom to establish a hierarchical framework for the command and control of major incidents and disasters.

'Nuff said!

Tax does have to be taxing.

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Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

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Are HMRC and Concentrix Breaching Data Protection Rules?

On Wednesday I wrote about the ongoing travails of Debbie Balandis wrt HMRC accusing her of sleeping with a newsagent, her previous tenant and her landlord.

My thanks to a loyal reader for pointing out that this series of fuck ups by HMRC are courtesy of Concentirx, the US company paid for by UK taxpayers to do what HMRC used to do wrt checking taxpayer details and chasing debts.

As the Independent reported in February 2015, Concentirx has form wrt being crap at what it does:

"Thousands of people on low incomes are being sent letters by an American outsourcing company accusing them of cheating on their tax credits and warning them that they may have their benefits stopped.

Concentrix, part of a multi-billion pound US business services company, has been accused of going on a vast “fishing expedition” as part of a controversial contract with HM Revenue and Customs to outsource its fraud and error detection.

Staff working at Concentrix have told The Independent that they are under pressure to open between 40 and 50 new tax-credit investigations every day and often don’t have time to check whether the allegations they are making stack up."

Aside from the complete incompetence and waste of money, there is another rather pertinent issue.

How is it confidential taxpayer details are being passed on to a US third party, and how is it that a US company is allowed to go trawling through people's bank accounts, tenancy agreements, credit card etc etc?

This is surely a breach of the laws covering confidentiality and data protection?

Do our "respected" MP's not a give a flying fuck about the rule of law anymore?

Why is HMRC allowed to pass on confidential details to an incompetent US company, and why is that company allowed to breach data protection and confidentiality rules?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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HMRC Should Check Facts First Before Unleashing The Hounds

In December 2011 I wrote the following about HMRC's contract with Experian:

"HMRC and the Department for Work and Pensions (DWP) have signed a deal with Experian (the credit reference agency) to use its data to detect fraud and error in the tax credits and benefits systems.

The Guardian reports that a recent HMRC pilot protected more than £16M of potential losses in tax credits, and projected savings over the 12 months of the contract are around £700M.

David Gauke, the exchequer secretary to the Treasury, is quoted:

"The government will not tolerate people who dishonestly divert money away from those who are genuinely entitled to it. Working with Experian will allow HMRC to escalate the fight against tax credit fraudsters, helping to ensure that they are caught and punished."

HMRC has released a number of case studies illustrating where savings have been made in the pilot. One involved a woman claiming as a single parent with four children, where a search of Experian's information on financial applications showed that she had a partner living at the same address. This led to her awards being stopped.

HMRC won't say how much Experian are earning (either from direct fees or performance fees) for this work.

The Telegraph reports that Experian will identify cheats by trawling through their household bills, credit card applications and employment records and will be paid “by results".

Let us trust that this all works out well for everyone then!

I just have two small observations:

1 The results from pilot schemes run by HMRC are not always what they appear to be.

2 Not everyone is as enamoured of Experian as HMRC are."

Moving on a few years and a loyal reader contacted me the other day noting that, despite splitting up and physically separating from her husband some years ago, HMRC is hounding her for overpaid tax credits because its records show that he still lives with her ex.

Sadly, according to my loyal reader, despite her protestations that she is separated HMRC do not believe her.

My loyal reader's problems are not, as far as I can tell, unique. Whilst it is all very well for HMRC to use Experian and other means (eg credit cards, loyalty cards, social media etc) to try to help identify those it suspects of fraud, HMRC needs to bear in mind that these sources are not always 100% accurate.

Experian, for example, is not always up to date; people who split up do not always do so on a friendly basis and do not always update their records (eg addresses) with speed or accuracy (either because of lethargy or maliciousness).

HMRC should use these tools as an indicator of potential fraud, not as 100% "proof" of actual fraud; ie it should check the facts first before delivering judgement.

I would be interested to hear from others who have been placed in a similar situation to my loyal reader.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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"

Tax Credit Deadline

HMRC is advising people that 31 July is the deadline for people to submit their Annual Declarations for tax credits, so that payments can continue after this month.

It has also warned of another rash of "phishing" emails from fraudsters that inform people that they are owed a tax rebate, then take the hapless victim to a fake HMRC website asking for credit or debit card details.

You have been warned!

Tax does have to be taxing.

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Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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Hanging On The Telephone - Deadline Extended

Owing to a deluge of last minute calls to HMRC, from people trying to renew their tax credits before last Saturday's 8PM deadline, HMRC's call centres were overloaded and many could not get through.

Therefore HMRC have extended the deadline by a few days, and have stated that they will look "sympathetically" on late callers, on a "case by case basis" (if claimants can show that they tried to ring on Saturday).

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Rearranging The Deckchairs

A loyal reader advises me that a very good source has let it be known that HMRC intends to move many of the current Tax Advisers onto Tax Credit work, even though many have little or no knowledge of this line.

The suspicion being that this move is to shore up the administration side of Tax Credits during the election period, in order to reduce the number of complaints.

I am also advised that HMRC intends to remove "unsocial hours" payments (a contractual element for the PN103 contract staff) for those working unsocial hours within the contact centres.

Anyone care to provide more information on these stories?

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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"

Shame

This particular comment posted on LabourSpace comes from someone who claims to be an advisor who works for an HMRC contact centre handling tax credit issues, he/she speaks of his/her shame and the fact that the whole system is disgusting.

He/she offers some useful advice to those who need to interact with the contact centres; take the name of the person you are talking to, and do not believe them if they say they can't escalate the problem.

Source LabourSpace:

"I have been an [Tax Credit] advisor for nearly 3 years now. I am the longest serving member of my contact centre by far, the staff turn over is incredible.

I can confidantly say that on most of the calls I get, I notice an error made by a previous advisor. This frustrates me hugely. The errors made for (e.g.) income being changed to nil are basic errors but they are made by inexperienced advisors on an industrial scale.

The contact centres are a shambles.

I count myself as a very good advisor. I have made my mistakes with peoples claims in the past simply through human error but when the person whos claim I have affected calls up and puts in a complaint, I can ensure you these are taken VERY seriously and advisors are severely reprimanded if a complaint is made about them.

Basically what I am trying to say is that a lot of silly errors aren't picked up because people are not complaining about specific advisors. Take their name on EVERY CALL, take their team number and location. I feel like I am betraying my fellow advisors BUT for every good avisor like myself there are 300 brand new ones who literally, through no real fault of their own, get thrown on the phone and given the power to ruin a persons claim, however unintentionally.

Also bear in mind we as advisors have NO power when it comes to escalating issues or chasing up anything done by our head office (TCO). The only option I can suggest if you really aren't getting anywhere is to ask to speak to a manager BUT unfortunately you'd be better speaking to a child, as the managers haven't got a clue and activly avoid taking any escalations.

If an advisor says they can't pass you to a team leader straight away as there are none available do not accept this, because their manager will be sitting opposite them waving their hands in the air, as in a 'I'm not here' manner, to avoid taking a complaint call.

The whole system is disgusting.

I am ashamed to work there but feel like if I left, the few peoples claims I do manage to fix will be lost along with the rest."

Tax does have to be taxing.

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"

Data Protection

Tax Credit Casualties has been approached by a journalist who is researching breaches of the Data Protection Act by HMRC.

If you have experienced any of the following please do let them know:

• HMRC has sent you information about other people's tax credit claims.
  
• HMRC has sent information about you to the wrong address.


• You have requested information from them under the Data Protection Act and you did not receive all the information, or didn't receive it within the 40 day time limit, or the recordings of the phone calls necessary to prove your case where missing or unavailable.


• You have received your Data Protection information but the packaging has been so poor that the information has been clearly visible, or the packet has even been taped together by the post office.


• There have been problems with previous joint claims, you're now separated, and HMRC are saying that due to Data Protection laws they can't give you information supplied by your ex-partner even though the overpayment relates to the time when you were still a couple and claiming jointly.


• HMRC's debt recovery department has discussed your personal details with neighbours, or has made enquiries to your neighbours about your family circumstances without your knowledge.


• Any other horror stories regarding information going astray, going missing, being shared with other people, etc.

Tax does have to be taxing.

HMRC Is Shite (http://www.blogger.com/www.hmrcisshite.com), also available via the domain http://www.hmrconline.com/, is brought to you by http://www.kenfrost.com/ "The Living Brand"

Poverty

"Tax Credit Casualties"
MEDIA RELEASE FOR IMMEDIATE USE

19 November 2008
Tax Credit Casualties Addressing Child Poverty
The Joseph Rowntree Foundation recently published a report stating that child poverty costs at least £25billion each year in losses to the Exchequer and in reduced GDP.

Thanks to the intervention of Tax Credit Casualties, just the last 33 cases they have progressed to write-off have saved those claimants £152,900 – which in turn has saved the Exchequer, as every pound saved for claimants by Tax Credit Casualties helps to reduce child poverty.

Paula Dean, Tax Credit Casualties' award-winning case worker, said: 'We will continue to help claimants fight cases where they believe overpayments were caused by HMRC's errors and we will continue to fight for an amnesty on all such overpayments. It is not in the best interest of our society to seek to recover these overpayments when recovery means children will suffer poverty. And from the work of the Joseph Rowntree Foundation it is clearly not in the interest of the public purse to push these families back into poverty.'

Tax Credit Casualties work to address child poverty by helping the victims of tax credit overpayments know their rights, and fight recovery of overpayments which are not the claimants' fault. The errors are often caused by software problems, HMRC operator error and faults inherent to the tax credit system itself. Our work helps families on low incomes having to choose between putting food on the table or shoes on their children’s feet, by repaying a debt they didn’t cause and are not responsible for.

Paula also said: "We encourage anyone else who finds themselves in this or a similar situation with tax credits to contact us via our website address which is www.TaxCC.org"

For further information contact:
Sarah McCall
National Coordinator
07947439959 (out of hours included)

Note to editors: Full details of the Joseph Rowntree Foundation's report can be found at http://www.jrf.org.uk/pressroom/releases/231008.asp
Tax Credit Casualties
www.TaxCC.org

Tax does have to be taxing.

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"

Congratulations To Tax Credit Casualties

Hearty congratulations to Tax Credit Casualties for also being nominated for the New Statesman New Media Awards, they are nominated in the Community Activism category.

"Tax Credit Casualties provide a life line to those who have, through no fault of their own, received overpayments of tax credits. Claimants in this position are routinely told that they can not appeal against this and must pay back the money immediately.

Tax Credit Casualties provide advice and guidance to enable individuals to fight their own cases, support so that individuals do not feel alone and also campaign for a fairer system. They even act take on cases for those individuals who are unable to fight for themselves. All this is provided in their own time and is funded through their own pockets."

Every bit of publicity they get is generating more disputes with HMRC - they advise me that the number of disputes are now at the highest level for five years.

A little bird also tells me that there is a film being worked on with the BBC....watch this space.

In my view, they well deserve to win the award. The dream ticket would be for both of our sites to win...one can dream!

Tax does have to be taxing.

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"

A Question of Security

There has been much "hoo hah" in the media and parliament recently about the HMRC data loss debacle.

That is hardly surprising given that the personal security of 25 million people has been put in jeopardy for the next 20 years or so.

However, when such large numbers are involved, it is sometimes easy to forget that these security lapses affect real people with real families and real lives. It is also worth remembering that this is not the first time (or, I suspect, the last) that HMRC has placed the security of individuals at risk because of its cavalier attitude to its "customers" and their personal data.

Here is one example of lax security, sent to me by Graham:

"Mr Peter Edmondson

Complaints Manager
HM Revenue and Customs
Debt Management and Banking
Complaints and Redress
Victoria Street
Shipley
West Yorkshire
BD98 8AA

C.C. Richard Summersgill,
Director,
Tax Credit Office,
Preston,
PR1 0SB.

28 November 2007.

Reference 1 : xxxxxxxxxx
Reference 2 : SAR ref: xxxxx

Dear Sir or Madam,

I am writing to complain about a most serious occurrence. This becomes even more serious when one takes into account the current publicity about the data protection fiasco that exists not only within HMRC, but throughout Government departments as a whole.

Yesterday I received some of the data requested in my Subject Access Request of 21 October 2007, in the form of a two-inch stack of A4 sized paperwork. Sometime after sealing, the package had been opened and then deposited inside a clear polythene bag, secured with a plastic tie-wrap, by Royal Mail.

The bag contained no communication from Royal Mail that the package had been damaged in transit. The opening on the “jiffy-bag” seems to have been made with a knife or other sharp implement of some description – I believe that it is too neat to have been an accidental opening.

The package was sent by second class, untraceable, mail and the postmark was not dated. The accompanying letter had a date of 20 November 2007, and I received the package on 27 November 2007. There therefore exists the possibility that the extensive data contained within the package could have been open to scrutiny, by the unscrupulous, for several days.

Also, because I had not received an acknowledgement from HMRC to my SAR request, I did not know whether to expect this information or not – and was, in fact, about to write another complaint letter on that very subject; it seems I have been pre-empted. To make the package even more attractive to interception, the return address that was printed on the address label informed the reader that this was from the SAR department – an open invitation for prospective data thieves.

The data printouts contained in the package included:

My address, my previous addresses, my NI number, my telephone numbers, details of my employer and MY BANK DETAILS.

My current partners’ address, NI number, telephone numbers, details of employer and her BANK DETAILS.

My former wifes’ NI number, details of employer and BANK DETAILS.

It is known, although not yet widely, that both internal and external fraud are major problems at the Tax Credit Office. The details, outlined above, are sufficient to pass your current security checks when talking to HMRC Tax Credit Officials or contracted Operatives on the telephone.

HMRC, unfortunately, are in the position of being Trustees of my personal and vulnerable data. I was in the Royal Navy Submarine Service for twenty years, working on Diesel, Fleet Nuclear, Polaris and Trident submarines and know quite a lot about security, security policies and data security. I, therefore, never leave things to chance:

With immediate effect, please issue me with a new NI number.

I will be contacting my bank to ask if it is possible to issue me with a new account number. I have held this account for 33 years! I demand that any costs incurred in changing my bank account number be reimbursed by the relevant Department within HMRC.

I am not in contact with my former wife. HMRC are to inform her of this probable breach of her personal details, and the possible dangers.

My current partner will be contacting you independently.

I have contacted the Police, and they have advised me to contact Royal Mail Investigations. I shall. This, however, will only deal with the probability that my package was intercepted within the postal system. The onus of the content and the method by which it was sent will fall on HMRC.

It is also worth highlighting that this complaint has implications for every communication that HMRC send, from the simplest letter, to award notices and beyond. As the bare minimum, everything should be sent by some traceable means.

Please note that I am forwarding a copy of this letter to my MP, other influential Politicians and The Information Commissioner, as well as several newspapers. I am also the WebMaster for Tax Credit Casualties and will be publicising it to their ever-growing membership.

I will, however, remove my vulnerable details before doing so!!

Yours Sincerely..."

I wonder how many more of these cock ups are out there, yet to be discovered?

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