TaxPersonal TaxTax credits were a disgrace, MPs tell Revenue

Tax credits were a disgrace, MPs tell Revenue

Sir Nicholas Montagu, chairman of the Inland Revenue, has had his department's delivery of tax credit payments branded 'disgraceful' by an all-party parliamentary committee.

Link: Primarolo calls tax credits a ‘huge success’

Former social security minister Frank Field made the comment at the Common’s Public Accounts Committee, where Sir Nicholas was explaining why hundreds of thousands of people had gone without the payments. Field said people had been left sick with worry by the fiasco.

Sir Nicholas conceded trust in the Inland Revenue has been ‘severely dented’. ‘I very much regret the fact a lot of people who should have been paid on time were not,’ he said.

But he pointed the finger of blame at new computer software provided by Electronic Data Systems.

‘I expected EDS to provide a system that was stable and fit for the purpose,’ he said.

Edward Leigh, the chairman of the PAC, was also critical of EDS. He pointed out it had made a ‘fat profit’ after ‘unleashing’ an unready system on society’s most vulnerable.

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

2d 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