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.
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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.