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

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