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Postal enquiries
HMRC's service standard aims to deal with 80% of postal contact within 15 working days of receipt and 95% within 40 working days. In 2005-06, they achieved 79.2% and 91.7% respectively.
Hansard, 10 July 2006, vol 448, no 181, col 1639W
Tax credits
In a recent statement on tax credits, Dawn Primarolo said that 'once error, fraud and adjustments leading to overpayment are taken into account, the net total estimated not to be recovered for 2003-04 is between £1.24 billion and £1.74 billion'. This took 'into account HMRC's estimates of claimant error and fraud through the random inquiry programme'. She said that to help 'reduce claimant error, HMRC is pursuing a number of measures, such as targeted advertising, including the current campaign to encourage claimants to renew their tax credit claim in good time, an improved claim form to reduce claimant error and redesigned award notices that include a clearer summary of the tax credit award and how it has been calculated'. With regard to fraud, HMRC is 'further refining of its risk assessment, putting compliance specialists in contact centres and increasing pre-payment checks on claims where fraud or non-compliance is suspected. In addition, HMRC will continue to use the information it holds, as well as data held by other Departments and third parties, to support and enhance its compliance operations'.
There followed some discussion about the statement, but ultimately Ms Primarolo persisted on saying that the tax credit system was working and the credibility of the system was only undermined by 'the continual assertion of allegations without the support of the facts'. She did acknowledge that the system 'might be able to be improved'.
Robin Williamson of the Low Income Tax Reform Group says that although it is difficult to draw conclusion from the figures, the LITRG would 'encourage HMRC to target not just those who are submitting fraudulent information, but also to help positively the majority who make innocent errors either in their own or in HMRC's favour'. An 'enabling approach' is required; the idea is 'fundamentally' a good one, but the administration needs be right.
Hansard, 11 July 2006, vol 448, no 181, col 1281
Royal Assent
The Finance Act 2006 passed its Lords stages on 17 July and received Royal Assent on 19 July.
