Another £1.4bn of taxpayer money blown away

Another £1.4bn is likely to be written off in overpaid tax
credits, according to a report from a committee of MPs.  

The Public Accounts Committee said this would bring losses
from overpayments to £1.9bn. A revamp to the system meant it would pay £500m
more a year, it added.

“Billions of pounds, far more than those who thought up the system ever
envisaged, are still routinely overpaid to claimants,” said Edward Leigh
MP, chairman of the committee. “Very large amounts have to be written off.
And the attempts to recover overpayments from genuine claimants have caused
significant suffering to many vulnerable families.”

“And HMRC seems incapable of mounting a credible and effective response
to the flood of money being wasted in this way,” he added.

The new tax credit system started in 2003, but it has been
plagued by complexity, overpayments and fraud. So far £500m of the tax credit
overpayments from the first three years has been written off.

At the end of March 2006 another £3.6bn in overpayments was outstanding, but
the MPs think that £1.4bn of this will also have to be written off as
unrecoverable.

To remedy the administrative problem caused by the need to notify rising
incomes, the government has introduced a new rule from the start of this tax
year. This means that the threshold for notifying HMRC of any increase during
the financial year has risen to £25,000.

“Once these measures are fully implemented they are expected to reduce
overpayments by a further third,” the HMRC said.

Sounds like more
creative accounting to me, but its only taxpayers money, so that’s all right.
No doubt we will see performance related bonuses next!!
 

(source BBC)

 

NuLab – Destroying Britain
from the inside out.

Advertisements

About IanPJ

Ian Parker-Joseph, former Leader of the Libertarian Party UK, who currently heads PDPS Internet Hosting and the Personal Deed Poll Services company, has been an IT industry professional for over 20 years, providing Business Consulting, Programme and Project Management, specialising in the recovery of Projects that have failed in a process driven world. Ian’s experience is not limited to the UK, and he has successfully delivered projects in the Middle East, Africa, US, Russia, Poland, France and Germany. Working within different cultures, Ian has occupied high profile roles within multi-nationals such as Nortel and Cable & Wireless. These experiences have given Ian an excellent insight into world events, and the way that they can shape our own national future. His extensive overseas experiences have made him all too aware of how the UK interacts with its near neighbours, its place in the Commonwealth, and how our nation fits into the wider world. He is determined to rebuild many of the friendships and commercial relationships with other nations that have been sadly neglected over the years, and would like to see greater energy and food security in these countries, for the benefit of all. Ian is a vocal advocate of small government, individual freedom, low taxation and a minimum of regulation. Ian believes deeply and passionately in freedom and independence in all areas of life, and is now bringing his professional experiences to bear in the world of politics.
This entry was posted in Main Page. Bookmark the permalink.