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Welfare Tax Credits

Question for HM Treasury

UIN 53095, tabled on 15 November 2016

To ask Mr Chancellor of the Exchequer, in how many cases relating to the maladministration of tax credits have compensation payments been offered in the last (a) year and (b) three months.

Answered on

23 November 2016

HM Revenue and Customs (HMRC) offers redress payments for a variety of reasons, including: poor complaint handling, costs, worry and distress and actual financial loss.

From 1 November 2015 to 31 October 2016 HMRC offered redress in 7,636 cases totalling £403,700.93. From 1 August 2016 to 31 October 2016 HMRC offered redress payments in 2,294 cases totalling £111,944.45. The amount of redress paid varies according to the claimants’ individual cases

HMRC have provisions in place to support those customers who are suffering financial hardship. From 1 January 2016 to 10 November 2016 HMRC received 12,750 hardship referrals. Of these 8,351 were paid and 4,399 were not paid.

A claimant can request a mandatory reconsideration if they believe:

  1. the decision is wrong;
  2. the award does not take into account a change of circumstance;
  3. the award is reduced or has stopped;
  4. they do not agree with a penalty notice; or,
  5. they have been charged interest.

In the majority of cases claimants produce new evidence as part of the mandatory reconsideration which results in the original decision being overturned. HMRC does not have a target relating to Mandatory Reconsideration a) intakes and b) upheld rates.

Answered by