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Research Library

This page brings together all of the available facts, figures and reports about Tax Credits.


Contents

HMRC Tax Credit Manuals and Other InformationThe Adjudicator's Office Reports
Different Versions of COP 26Parliamentary Ombudsman Reports
Official HMRC Tax Credit StatisticsPublic Accounts Committee Reports
Tax Credit Office MP Hotline Public Administration Select Committee Reports
Tax Credit Consultation Group Meeting Minutes The Tax Credit Act 2002

 Please e-mail the webmaster if you know of, or find, anything that you think should be included.


HMRC Tax Credit Manuals and Other Information

HMRC Tax Credit Rates and AllowancesRates and thresholds of Tax Credits
HMRC Tax Credits ManualThe HMRC Tax Credits Manual
HMRC Tax Credit Technical ManualA guide to the law relating to child and working Tax Credits
HMRC Tax Credits Claimant Compliance ManualThe HMRC manual regarding claimant compliance
HMRC List of Tax Credit Forms and LettersList of Tax Credit forms and letters used by HMRC
HMRC Tax Credit LeafletsOther Tax Credit leaflets, letters and inserts sent out by HMRC
HMRC Staff Manuals HomepageThe main page for all HMRC staff manuals
HMRC On-Line LibraryThe main page for the HMRC on-line library

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Different Versions of COP 26

HMRC Code of Practice 26 details what happens if you have an overpayment of Tax Credits.

There is still confusion about which version of COP 26 applies to different disputes. HMRC apparently told the Tax Credit Consultation Group that the relevant date is when the dispute decision is made, (see Rightsnet forum), but no mention can be found within the TCCG meeting minutes to verify this.

So, all new dispute decisions made on or after 31st January 2008 should have the new test applied. The 'old reasonable belief' test will apply if HMRC have already made a decision before 31st January, under the reasonable belief test, and the claimant is not happy with that decision. When the claimant asks them to look at it again, they’ll be looking to see if they made the decision correctly and therefore applying the old test.
 

COP 26 March 2008

COP 26 January 2008 (if anyone has this version, or any others not listed here) please e-mail to the webmaster)

COP 26 August 2004

COP 26 December 2003

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Official HMRC Tax Credit Statistics

Full HMRC statistics regarding Tax Credits can be found here: HMRC Statistics: Personal Tax Credits.

The overpayment figures below are taken from the 'Child and Working Tax Credit Statistics Finalised Annual Award Supplement On Payments' report for the relevant years:

Finalised Tax Credit Awards 2006-2007There were 6,530,000 claims for Tax Credits.
1,291,000 claims were overpaid by a total of £953,000,000.
That's 19.77% of all claims still OVERPAID.
This is the first year that the higher £25,000 income disregard came into force.
Finalised Tax Credit Awards 2005-2006 There were 6,480,000 claims for Tax Credits.
1,902,000 claims were overpaid by a total of £1,573,000,000.
That's 29.32% of all claims OVERPAID.
Finalised Tax Credit Awards 2004-2005 There were 6,458,000 claims for Tax Credits.
1,958,000 claims were overpaid by a total of £1,695,000,000.
That's 30.32% of all claims OVERPAID.
Finalised Tax Credit Awards 2003-2004 There were 5,670,000 claims for Tax Credits.
1,879,000 claims were overpaid by a total of £1,931,000,000.
That's 33.14% of all claims OVERPAID.


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Tax Credit Office MP Hotline

The table below shows the number of calls answered by the 'Tax Credit Office MP Hotline' staff.

In the period 2006-2007, 416 calls by MPs were abandoned before being answered. A further 202 calls were unanswered in the period from April 2007- February 2008.

Calls by MPs to Tax Credit MP Hotline
Month/Year20032004200520062007
April1,8829301,4111,1641,199
May4,3717749421,4021,286
June4,1861,0001,2341,535Unavailable
July1,4721,1141,4331,294Unavailable
August8589911,3371,348Unavailable
September8151,3261,3001,398Unavailable
October1,0321,3281,4631,599Unavailable
November8351,7141,9871,823Unavailable
December9161,6751,6131,458Unavailable
January1,0321,7301,7121,498Unavailable
February1,0521,6901,1951,351Unavailable
March8391,7001,2411,490Unavailable
Total19,29015,97216,86817,3602,485

Sources: House of Commons Hansard Written Answers for: 1 May 2008 (pt 0012) Column 634W , 25 June 2007 (pt 0096) Column 419W , 21 March 2006 (pt 41) Column 348W , 18 October 2005 (pt 29) Column 924W , 21 February 2005 (pt 20) Column 76W

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Tax Credit Consultation Group Meeting Minutes

The Tax Credit Consultation Group (TCCG) minutes can be found on the HMRC TCCG website Index and Archive . Although the first meeting minutes listed are for 17th January 2005, there were earlier meetings - but no minutes seem to be available for them.

 For ease, all the available minutes from the Tax Credit Consultation Group meetings are linked below:

2008200720062005
 14 November 200715 November 200616 November 2005
 26 September 200713 September 200622 September 2005
16 October 200817 July 200712 July 200613 July 2005
26 June 200816 May 200717 May 200611 May 2005
26 March 200807 March 200715 March 200617 January 2005
15 January 200817 January 200718 January 2006 

Next Meeting - 16 October 2008.

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The Adjudicator's Office Reports

The Adjudicator acts as a referee looking into complaints about HMRC, including the Tax Credit Office (TCO). They investigate and help to resolve complaints from individuals and businesses who remain unhappy about the way their affairs have been handled. Their leaflet AO1 gives detailed information about how they deal with complaints, and there is more information available on The Adjudicator's website.

Links to each of The Adjudicator's Annual Reports are below:

The Adjudicator's Office Annual Report 2008

The Adjudicator's Office Annual Report 2007

The Adjudicator's Office Annual Report 2006

The Adjudicator's Office Annual Report 2005

The Adjudicator's Office Annual Report 2004

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Parliamentary Ombudsman Reports

The Parliamentary Ombudsman (PO) carry out independent investigations into complaints about poor service and unfair, or improper, actions by Government Departments or their agents. More information can be found on the Parliamentary Ombudsman website.

The Ombudsman's reports regarding Tax Credits are below. The main links will open a PDF version of the report, but there is also an option to view each report in HTML, which is browsable just like any website.

The Treasury response to each report can also be viewed.

PO 5th Report Session 2006-07  Tax Credits: Getting It Wrong? HTMLNo Treasury Response
PO 3rd Report Session 2005-06  Tax Credits: Putting Things RightHTMLTreasury Response

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Public Accounts Committee Reports

The Public Accounts Committee (PAC) is appointed by the House of Commons to examine “the accounts showing the appropriation of the sums granted by Parliament to meet the public expenditure, and of such other accounts laid before Parliament as the committee may think fit”. More information can be found on the PAC website.

The Parliament website holds all documents published by the Public Accounts Committee.

Links to the Public Accounts Committee reports regarding Tax Credits are below. The main links will open a PDF version of the report, but there is also an option to view each report in HTML, which is browsable just like any website.

The Treasury response to each PAC report can also be viewed.

PAC 8th Report 2007-08 HTMLTreasury Response
PAC 22nd Report 2006-07HTMLTreasury Response
PAC 37th Report 2005-06HTMLTreasury Response
PAC 5th Report 2005-06HTMLTreasury Response
PAC 14th Report 2003-04HTMLTreasury Response


Although these two reports were published before new Tax Credits were introduced, they are included here for continuity:

PAC 29th Report 2002-03HTML
PAC 67th Report 2001-02HTML

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Public Administration Select Committee Reports

The Public Administration Select Committee (PASC) are a committee of eleven Members of Parliament, appointed by the House of Commons and drawn from the three largest political parties. The Committee examines the quality and standards of administration within the Civil Service and scrutinizes the reports of the Parliamentary Ombudsman. More information can be found on the PASC website.

The Parliament website holds all documents published by the Public Administration Select Committee.

The two reports below were produced in response to the Parliamentary Ombudsman's report 'Tax Credits: Putting Things Right' from 2005-06. The main links will open a PDF version of the report, but there is also an option to view each report in HTML, which is browsable just like any website.

PASC 2nd Report 2005-06 Tax Credits: Putting Things RightHTML
PASC 4th Special Report 2005-06 Tax Credits: Putting Things Right: Government ResponseHTML

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The Tax Credit Act 2002

This page just wouldn't be complete without the legislation that brought a benefit into the Tax Law world !

It isn't known whether the version linked to here incorporates any amendments that have been issued since 2002.

The main link opens a PDF version, but there is also an option to view it in HTML, which is browsable just like any website. The Explanatory Notes give a 'plain English' interpretation of the legislation.

Tax Credit Act 2002HTMLExplanatory Notes

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Please note that we are not tax professionals and are working on a voluntary basis, unpaid, in our ‘free time’. Between us, we have a lot of experience and knowledge in this area, gained over the last few years of supporting victims and helping them fight for justice and their rights. But legislation, operating practice and individual cases change all the time. While we aim to be professional and accurate at all times, please understand the circumstances we are working under, and accept our support, guidance and information in the sprit it is offered; goodwill and camaraderie.

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