HMRC slammed over tax credits bungle

HMRC has been accused of be writing off £1.4bn in overpaid tax credits by the all party Public Accounts Committee.

The PAC said combined with £500m cost of revamping the system, it would bring losses from overpayments to £1.9bn.

Edward Leigh, chairman of the committee, said: ‘Billions of pounds, far more than those who thought up the system ever envisaged, are still routinely overpaid to claimants.

‘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.'

Further reading:

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On the money with Gavin Hinks