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Welfare Tax Credits

Question for HM Treasury

UIN 54564, tabled on 23 November 2016

To ask Mr Chancellor of the Exchequer, if he will publish in full the criteria used formally to determine the level of compensation paid to claimants for maladministration of their tax credits.

Answered on

28 November 2016

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

Between 19 November 2013 and 18 November 2014 the minimum compensation payment to a claimant was £1.65 and the maximum compensation payment to a claimant was £4,938.38.

Between 19 November 2014 and 18 November 2015 the minimum compensation payment to a claimant was £0.58 and the maximum compensation payment to a claimant was £3,529.60.

Between 19 November 2015 and 18 November 2016 the minimum compensation payment to a claimant was £1.00 and the maximum compensation payment to a claimant was £3,072.64.

HMRC policy in respect of compensation payments is that they will consider refunding any reasonable costs that claimants may have incurred due to mistakes and/or unreasonable delays. In certain circumstances, claimants may also be eligible for a small amount of redress. Details of HMRC’s redress policy and guidance is available publically and can be found at: http://www.hmrc.gov.uk/manuals/crgmanual/crg5525.htm

Answered by

Treasury
Named day
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