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Contract with Concentrix ended in chaos

24 January 2017
Issue: 4584 / Categories: News

The NAO’s findings on HMRC’s contract with Concentrix.

The cost of the failings by Concentrix which until last autumn administered HMRC’s tax credits system has emerged in a report.

The US firm stopped or amended tax credits awards in 12% of cases investigated and of these 32% were overturned after a mandatory reconsideration. It left HMRC with a compensation bill of £86 815 after a series of complaints by claimants.

In a report  HMRC’s Contract with Concentrix the National Audit Office uncovered numerous failings in the deal which the Revenue terminated last November.

HMRC had estimated that the planned three-year contract would save £1bn from stopping incorrect claims reducing overpayments and recovering money already paid out. By March 2016 HMRC had reduced its forecast of expected savings to £405m. This was due to two main factors:

  • a two-month delay to the contract start date because of...

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