Write off excess tax credits, says Ombudsman | AccountingWEB

Write off excess tax credits, says Ombudsman

All tax credit overpayments arising from official error in 2003/04 and 2004/05 should be written off, the Parliamentary Ombudsman has recommended.

Ann Abraham has made several major recommendations aimed at improving the system and "helping those who have been disadvantaged by it", a day after the Adjudicator, Dame Barbara Mills, reported that she had upheld 86% of tax credit complaints referred to her.

The Ombudsman's report released today (22 June), Tax Cred


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Blair has apologised

John Savage | | Permalink

Apparently Blair has apologised in Parliament today for this shambles. Well, that's OK then, isn't it!!

Perhaps if Primarolo and this shoddy Government spent less time being in continual denial about all their failures then this sort of fiasco wouldn't be happening.

And as for tax credits being there to help the low paid families, heaven knows why those on good incomes are getting it. I know of a case whereby two professional teachers are getting this for one child!! No wonder Brown's black hole is getting bigger (sorry, forgot, they deny that one as well)

Is it just me?

adam.arca | | Permalink

Perhaps it's just me and I'm too self-centered but I don't see why the overpaid tax credits should be written off at all.

I find it galling in the extreme that I don't qualify for child tax credit on the basis of family income now, yet because my children were born in the late 90s I haven't benefited from any of the recent government largesse for children and had to pay my own way throughout; all this in a period when I was starting in practice and my income was modest in the extreme.

So, not only does my tax go to pay for kiddy perks which I personally didn't get, but I'm also expected to fund the write-off of overpayments.

Let's be honest here, a lot of these tax credits seem to act like a top-up to people rather than an essential component of their weekly income and they get spent on booze, fags and foreign holidays.

So, no, I don't see why this money shouldn't be pursued (the easiest way, surely, being to offset against future credits).