Concentrix loses tax credit checking contract with HMRC

HMRC is to sever ties with Concentrix the firm contracted to check claimants’ tax credits entitlement. The contract with the US business services entity runs out in May 2017 and will not be renewed. Both organisations will now be focused on clearing the outstanding cases. HMRC is redeploying 150 staff to help with this.

HMRC’s chief executive Jon Thompson said: ‘While it is right that we ensure that tax credits claimants only receive the money to which they are entitled it is vital that those customers have a high level of service. That is why we have decided not to extend our contract with Concentrix.’

HMRC said the contract with Concentrix worth up to £75m over three years was on a payment by results basis and has secured £280m of savings so far. Payments to the firm are based on the quality and accuracy...