TaxPersonal TaxTreasury targets £1bn of tax credits

Treasury targets £1bn of tax credits

The Treasury is trying to reclaim as much as £1bn in overpaid tax credits for the last financial year, according to Grant Thornton.

Link: Christmas tax credit woe

Because salary information used to calculate the amounts due to families are based on the previous year’s earnings, overpayments are ‘endemic’ within the system, according to the accounting firm.

‘The whole system is founded on the premise that people’s earnings remain the same from one year to the next, which is rarely the case,’ Ian Luder of GT told The Sunday Times.

Since its creation, the tax credits system has been fraught with problems, with over 200,000 families still waiting for their payments more than a year later, according to Revenue figures.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

15h Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter