TaxPersonal Tax£6bn overpaid to tax credit claimants since 2003

£6bn overpaid to tax credit claimants since 2003

£1.7bn overpaid in the 2005/2006 tax year

HM Revenue & Customs has overpaid
tax credit claimants nearly £6bn since the scheme was launched in 2003.

The taxman said that in the 2005/2006 tax year alone £1.7bn was overpaid with
some of this money likely to be written-off.

Despite the overpayments and fraud issues, HMRC claimed it had helped
millions of low income families back into work and out of poverty.

‘Tax credit provide support to 20 million people including 6 million families
and 10 million children,’ said
Stephen Timms, chief secretary to
the Treasury.

Further reading:

Tax system successfully helping poor says ONS

HMRC slammed over tax credits bungle

Brown stands by decision to scrap pension tax credits

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

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

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m 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

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

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

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter