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Tax Credit Problems 'cost £1.5bn'

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http://news.bbc.co.uk/1/hi/uk_politics/7505860.stm

Up to £1.5bn in tax credit payments was lost to fraud, accidental overclaims and other errors in 2006/07, the National Audit Office says.

This accounted for 7.2% and 8.4% of all the money given out in credits during this period, it added.

The NAO's head, Tim Burr, said the size of the problem facing HM Revenue and Customs was "significant".

But the proportion of tax credit funding lost in this way was falling, the NAO's report said.

'Respond effectively'

The figure for 2006/07 was between £1.28bn and £1.5bn, it was calculated. This was down from between £1.3bn and £1.64 the previous year.

Mr Burr, the comptroller general, said: "Levels of tax credits error and fraud are significant when compared with the expenditure on the scheme...

"HMRC now has a target and has developed a strategy for reducing error and fraud. It will need to monitor how the measures it adopts are contributing to the achievement of the target and to respond effectively."

Treasury Minister Jane Kennedy said levels of fraud and error were falling, and that no more that 5% of tax credit payments should be lost in this way by April 2011.

Liberal Democrat work and pensions spokesman Jenny Willott said: "The tax credits system is so complex that it is abused by fraudsters, misunderstood by claimants and mismanaged by officials."

Earlier this year it was revealed that rightful tax credit claimants had been overpaid by £1bn in 2006/07.

Fiscal stimulus.

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Are there organisations offering detailed advice on how to ensure you get maximum tax credits?

Is that a recession proof business? Charging people for advice on how to screw the system?

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These Tax credit and pension credit people are a bunch of total s--t. My mum went into a home four years ago and my dad was told to apply for pension credit to pay towards her keep. she was assessed and awarded about £90 per week towards her care . They were given all the right information at the time , reguarding her and my dads financial position. She passed away December last year and now they are disputing the fact that she got pension credit and asking questions that they asked at the time and got the correct answers to at the time. The solicitor cannot finalize her estate and is costing my dad the sole benefactor of the will quite a lot of money each time the solicitor has to communicate with them. At present it looks like all the tax credits are going to have to be repaid from her estate leaving my dad about £20,000, down on what he was expecting. The whole process and their attitude towards my dad an old man of 76 is abysmal. They should find out who f---k-d up at the time and get the money back of them.

Edited by miko

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  • 395 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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