|
£20m Tax
credits blunder
The HM Revenue & Customs (HMRC) is about to refund up to a
quarter of a million families who, due to an error, were forced
to repay their tax credits.
Claimants suspected of being overpaid are only now aware of it;
the HMRC never informed them that they were being investigated.
These cases date back to 2003-04 and there were about 5.8
million such overpayments made. The HM Revenue & Customs
wrote to the majority to inform them about the overpayment;
they never contacted the remaining 5 percent. The HMRC now face
the challenge to repay the tax credit they managed to claw
back.
An HMRC spokesperson said, "We made a mistake and have to hold
our hands up and repay the money,"
Media claims that report the error to cost the HMRC close to
£500m have been dismissed as being “gross and distorted” and
they estimate the figure to be closer to £20m. The HMRC will be
contacting all the families involved and offer them a
refund.
The National Audit Office informed the public that the losses
due to fraud and error, totaling up to £1bn a year, are
“unacceptably high”. Following an attack by an organised gang
of fraudsters in 2005, the online tax credit claims system has
been closed.
Back
to Top
| 
