You might also be interested in
Replies (6)
Please login or register to join the discussion.
The great thing is...
that HMRC now have an extra 100 staff to deal with the problem...
That's a joke, but actually they are totally under resourced (how do you honestly try and chase up £5 billion in this system?). They are probably better of creating an "onshore disclosure tax credit amnesty" because that way people could own up to receiving overpayments...
if they can work them out...
Discrimination
Is it not discrimination to write off some debts but not all of them?
What about those already repaid?
Gordon in wonderland...
No surprises fraud and error thrive under this barmy system. I have a client routinely asked to repay thousands - she is not sure the exact amount as the figures keep changing - from payments made years ago. Another friend routinely adjusts his 'income' to maximise his tax credits which largess pays for his three cars.
I doubt this government will ever learn.
I agree with Darrin...
...it would have been far more simple for those working to have increased the personal allowance for example. However, my cynicism would lead me to believe that the government writes out tax credit cheques because they know that people will remember receiving a cheque more vividly than they would notice an increase in their take home pay that they may not fully understand.
As the saying goes money talks, and in this case it's saying, 'look what a caring, compassionate government you have.'
the person...
...who personally and passionately masterminded the strategy leading to the fraud is about to become our next PM.
The strategy cannot can be defended on the grounds that "the strategy was OK, but the detailed implementation was the problem".
The detailed implementation is ALWAYS the problem.
With any strategy.
As anyone with a brain or experience does (or should) know.
The tax credit system was born a [***] due to utter negligence on attending to any level of detail from its inception.
The tax credit system, this love child of GB, will only (eventually or never) become a sensible system when the Govt, Treasury and HMRC get the details right.
Now THAT is a big ask.
But why should GB worry about that? He feels he had a good strategy.
But hey, why worry about strategy when members of the cabinet lead the way by telling us that it is a citizen's right to decide which taxes are moral and payable?
Step up our very own Dawn.
Oh, I forgot. If SHE says the taxes are moral and payable, other citizens should just pay up meekly. Only she has the right to be able to judge whether the Govt's invitation to pay taxes is moral.
Oil the wheels
Complex tax or benefits systems can only work with the co-operation of the thousands of clerical people who are regularly approached to assist often informally and unpaid.
IMHO Tax Credits would only work if they were a true 'reverse tax' system processed through the tax code. This would often mean exempting small employers.
I would gladly operate such a sensible system if National Insurance were merged with Income Tax and other no loss/gain simplifications were implemented first.
What was guaranteed to alienate me and others is a further strata of nonsense landing on the accountants desk for which Gordon and Dawn are solely responsible.