PAC criticises HMRC tax credit target failure

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Nick Huber
Freelance journalist
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A committee of MPs has urged HMRC to improve the tax credit system after it emerged that the tax authority would fail to hit a target for reducing tax credit fraud and error.

report by the Public Accounts Committee (PAC)  said that the errors had "cost the taxpayer dear".

In 2010, HMRC committed to cutting fraud and error in the tax credit system by £8bn by 2015. But...

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29th May 2013 14:38

Really the person

who gave the target of £8bn should be questioned on how that figure was arrived at. Then some sense would be made of the £3bn.

All these figures bandied about come from thin air, reason being is that they come from assumptions and "in my opinions" etc.

Total waste of time. These MP's time would be better spent on getting rid of the extremist teachers who seem to be able to say and do anything they want without retribution.

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30th May 2013 12:22

Yes, Minister

It's akin to what people will say when under duress/torture - anything you want them to say !

One can imagine departments being browbeaten into saying how much they can save ... "Well, XYZ says they can come up with X million - how much can you get us ?"

Unless the figures were arrived at by research which was methodologically sound.

In any case, how much of the amounts being considered were at least actually going to deserving cases: people in need, rather than out-and-out fraudsters ?

I don't really have a big problem with a hard-up familiy getting a few quid extra due to complexity of tax and benefits rules - I wonder how many miss out due to "jobsworth" application of rules in the other direction ?

If they are really  "tax credits" then they should be aligned closely with the tax system, with any 'clawbacks' taking place from the subsequent year's payments via the tax system, with, say, annual accounting, Save on admin too.

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