HMRC has recompensed out over a billion in error
The National Audit Office watchdog has advised the problem is set to get worse as hundreds of thousands of people are moved from tax honours to a new Universal Credit system.
Figures in HMRC’s annual report revealed an guessed £1.57 billion in overpayments was made as a result of errors and fraud in the 2015/16 tax year.
This judge is almost 15 per cent up from the £1.37 billion of overpayments in the above-named 12 months.
It is also the first time since 2012/13 that HMRC missed its goal of ensuring the amount overpaid due to fraud or error was less than five per cent of the out-and-out amount paid in tax credits.
Around 4.4 million families across the UK state working tax credits or child tax credits as a way to top up their income.
The National Audit Position said: “HMRC’s estimated increase in error and fraud within tax commendations is contrary to the significant reductions achieved in previous years, and the rate is awaited to increase further.”
Work and Pensions Secretary Damian Amateur
HMRC sacked American firm Concentrix last October supplanting complaints that 45,000 people had wrongly had their benefits fired.
This has since resulted in HMRC staff having to counter dodge themselves.
Tougher rules designed to stop bogus benefit contends have instead pushed up fraud figures.
Around the time of Concentrix being unfastened, MPs on the Commons’ Work and Pensions committee accused HMRC of hounding unsophisticated workers on benefits while allowing rich tax dodgers to continue to put down the rules.
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Lib Dem MP Jamie Stone said: “Human being will be shocked to see that while their local schools and clinics are facing cuts, almost £1.6 billion of taxpayers’ cash has been even the scored out due to fraud or error.
“Meanwhile, some people are still not receiving the payments they justify. The Government needs to get a grip.”
Frank Field, Labour MP and former chairman of the commission, said: “We need to safeguard taxpayers’ money.”
HMRC said it obtained a record £574.9 billion in tax in 2016/17 — up 7.1 per cent on the previous year.
A track record £28.9 billion was clawed back from businesses and individuals that go busted to pay the amount of tax due.
But the amount HMRC was forced to pay back after losing court disputes with firms and individuals rose to £7.8 billion in 2016/17 from £5.9billion.
HMRC raised a record £574.9 billion in tax in 2016/17
The average waiting time to speak to its rally centre staff fell from 12 minutes to under four split seconds — although these waiting times do not include time spent lend an ear to to an automated message.
In 2015/16, HMRC was forced to hire 800 shillelagh following a meltdown in customer services that meant taxpayers were false to wait on hold for an average of 47 minutes.
An HMRC spokesman chance: “We are working hard to make it as easy as possible for tax credits customers to smother their claims up-to-date so they receive the correct amount of dough.”