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Not out of the woods yet!

19 December 2007 / Allison Plager
Issue: 4139 / Categories: Comment & Analysis , Admin , Income Tax
Huge problems remain with the administration of tax credits. ALLISON PLAGER peruses the Parliamentary Ombudsman's recent special report

Key points

  • Claimants still do not understand how the system works.
  • HMRC are not always consistent in how they apply COP 26.
  • Communicating with claimants has improved.
  • Disenchanted claimants need to be convinced not to opt out.

If there is one element of her former job as Paymaster General that Dawn Primarolo must be glad of losing it will surely be tax credits. While tax credits undoubtedly improve the lot of many individuals and families they do so in spite of their tortuous administration processes.

Although no longer considered worthy fodder for the more sensationalist national newspapers the problems long associated with tax credits linger on depressingly and show only very slow signs of receding.

Parliamentary Ombudsman Ann Abraham recently published her second special report on tax credits 'Tax credits: getting it...

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