Business News
Tax credit complaints on the increase
The number of complaint cases against HM Revenue and Customs decisions that have negatively affected vulnerable groups of people in the UK has increased in recent years, according to a new report by the official adjudicator.
The adjudicator’s office primarily deals with complaints made against the HMRC, Valuation Agency and Insolvency Service regarding their conduct or service.
The current adjudicator, Judy Clements OBE, commented on her latest report: “In recent years, we have seen a growth in cases where HMRC’s decision making has had an adverse impact on vulnerable groups of people; for example pensioners facing unexpected tax bills.”
In some cases, the HMRC even sought repayments even though they had already been made years before.
For example, last year, the HMRC was instructed to pay over £100,000 in compensation to taxpayers it was deemed to have treated unfairly. It was also told to write off almost £1.8 billion in tax credits it had mistakenly overpaid.
Complaints regarding tax credits have made up the majority of the increase over the past twelve months.
Judy explained: “There is scope for further improvement in the consistency of decision making, the length of time the complaints process takes and the detail given to customers.”
“The quality of the complaints handling on taxation cases is generally satisfactory, although I am expecting a sustained focus on quality improvement for the future.”
One particular area of concern was the handling of cases involving the application of Extra Statutory Concession A19 (ESC A19). Two of the cases published in the annual report detailed incidents relating to the topical issue of PAYE over and under payment.
In one case, the adjudicator stated that the HMRC was at fault and failed to act on information it had been supplied. The taxpayer was subsequently compensated as a resolution for the poor handling of the case by the HMRC.
The full report can be found at the Adjudicators Report website.
