HMRC loses £2.3 billion in tax credit
HM Revenue and Customs have missed their target for tax credits by more than 2.3 billion pounds, meaning that there are still many cases in which people are being overpaid.
It’s believed that up to 10% of the tax credits that were issued to the public in 2009 shouldn’t have been. Although there were plans for this to be halved to 5% by 2010 to 2011, the target was missed.
One of the reasons why this could have happened is because the taxation is too complicated, meaning that it can be difficult for some to understand what they are and aren’t entitled to.
One way to make sure that you are on track and receive the right levels of credit – preventing a nasty tax bill down the line – is to have an accountant who can check all of your details for you.
According to Margaret Hodge, who oversees a committee in parliament, the developments are deeply concerning.