2005

Do HMRC want to talk to me? The above heading is a valid question after our 91 attempts to speak to an HMRC helpline on which we reported two months ago. Not a happy experience. We decided to follow up this investigation by finding how easy it was to find a telephone number to contact the "tax man" in order to pay him a visit. 8 December 2005
State pension: to defer or not to defer (Part 2) In our previous article we discussed the new legislation allowing deferral of your state pension in favour of a lump sum. We also outlined the effects on tax and various benefits during the period of deferment. This article seeks to explain in more detail what happens to your tax and benefits once you stop deferring and start receiving extra state pension or a lump sum payment. 8 December 2005
Tax credits and benefits trap for same-sex couples With the coming into force today of the Civil Partnership Act 2004, same-sex couples may justly be celebrating their newly found, hard-won recognition in the eyes of the law. But it comes at a price for those claiming tax credits and benefits. 5 December 2005
A welcome respite for tax credit claimants In his Pre Budget speech the Chancellor announced a number of measures which will, in time, alleviate some of the harsher edges to the tax credits system, and which, for the last 18 months, we and others have been campaigning. It is hoped that those who have been caught in the past, or will be caught before it is possible to implement these changes, will now have a "softer touch" applied until the computer systems can be adjusted to cope. 5 December 2005
Chancellor signals more of the same Although the Chancellor signalled changes to tax credit overpayments of some significance, when it came to income tax, national insurance and tax credits generally, it was largely "as you were". There has been no dramatic attempt to take people on exceedingly low incomes out of the tax net so we have the continuation of the strange scenario of HMRC taking with one hand and either themselves, or the DWP, giving back with the other. 5 December 2005
LITRG features in Real Story episode On Monday evening 14 November LITRG featured in BBC1's episode of Real Story with Fiona Bruce. The subject was a claimant whose overpayment nightmare turned out to have been wholly unnecessary: she was actually owed money by HMRC, not the other way around. We sense that there may be many more claimants whose entitlement has been wrongly calculated, and who are being made to pay back overpayments they cannot afford when all the while they have been underpaid. 15 November 2005
Why are tax credits so difficult to understand? The government over the last few years has described the tax credits system as "simple", "responsive", and "targeted". In large parts of the system it is none of those things. Very often it does things which are unexpected and irrational if you are a recipient or potential recipient. One of those things is the way in which the system calculates income so that it represents, not what the claimant is actually getting at any given point during the tax year, but what their income would be if the tot 14 November 2005
LITRG urges an integrated approach to welfare reform In our evidence to the Work and Pensions Committee of MPs on the proposed reform of incapacity benefit, LITRG calls for a comprehensive integrated approach involving tax, social security and employment services, to help promote employment for disabled people. 10 November 2005
Transfer to child tax credit to be completed by end of 2006 By the end of 2006, the Government expect to have completed its programme of migrating child elements for all Income Support and Income-based Jobseeker's Allowance (JSA) claimants to the child tax credit system. This article explains what is in the Government's latest announcement. 9 November 2005
LITRG engages parliamentarians on tax and disability issues Members of LITRG's disability team were pleased to be invited to address the Parliamentary All-Party Group on Disability at their meeting on 11 October. This gave us the opportunity to raise awareness among parliamentarians of our December 2003 Report, Disability in Tax and Related Benefits: The Case for a Modern and Coherent Approach - the report can be accessed below. 8 November 2005
HMRC suspends recovery of disputed tax credit overpayments During questioning by MPs on the House of Commons Treasury Sub-Committee, the Paymaster General (the minister responsible for tax credits) announced that, subject to final testing of procedures, automatic recovery of disputed tax credit overpayments will be suspended from the middle of November. 7 November 2005
Civil partnerships - tax, tax credits and benefits In this information article we have outlined the basic changes in tax, tax credit and benefits which will take place when the provisions of the Civil Partnership Act 2004 (CPA) come into force in December 2005. Of necessity we can only cover the essential details of the areas most likely to be affected. We have looked at tax and benefits separately summarising briefly for each how the rules will work. 3 November 2005
Why do HMRC bother with service standards? Eighteen months ago we were critical of the Inland Revenue for not publishing their service standards when their codes of practice committed them to do so. Subsequent to our article partial standards were quickly published for 2004/05. Clearly with the new HMRC it is important to know what the new organisation is to be measured against, after all, we were told one of the reasons for its formation was to improve customer service. 20 October 2005
"Lack of Contact" Centres It is one part of HMRC's long-term strategy to direct its customers primarily to the telephone for help or guidance. Contact Centres are the places where people are directed for that telephone assistance. The problems with the tax credit telephone helpline are now legendary. However increasing numbers of "ordinary taxpayers" have been reporting that they cannot get through to the tax office. We decided to investigate. 17 October 2005
"Lack of Contact" Centres It is one part of HMRC's long-term strategy to direct its customers primarily to the telephone for help or guidance. Contact Centres are the places where people are directed for that telephone assistance. The problems with the tax credit telephone helpline are now legendary. 17 October 2005
Tax credit renewals - the danger of delay According to a recent report in the Guardian (Thursday 6 October), more than one million families have not renewed their tax credits claim by the deadline of 30 September. There is also anecdotal evidence of many claimants deciding not to renew because they no longer wish to receive tax credits after being badly treated by the system. But delaying can be dangerous. 13 October 2005
On-line Services - a new opportunity In giving evidence to a team reviewing HMRC's on-line services, LITRG has said that the Department must not lose sight of the interests of those who cannot cope with an on-line environment. Already there are worrying signs that HMRC are turning to on-line only services in the drive to cut costs. 11 October 2005
Do HMRC really care about the long-term sick? A year ago we pointed out in our article on this website Revenue incapable on incapacity benefit how their information and service for those claiming this benefit was totally inadequate. We had the impression that "something would be done" but it seems we were mistaken. 11 October 2005
The newly self employed and National Insurance Every day more and more people are starting up their own businesses. Most turn to HMRC for advice about how National Insurance works for the self employed and the Revenue leaflets in this area are, in the main, very helpful. However if you are reading one of their leaflets about when you need to register for Class 2 NIC and when a penalty can be charged for late registration you will actually be looking at a deadline which is simply expressed, but is not strictly correct. 10 October 2005
Their day in court Oral hearings before a court or a tribunal have been the traditional way of deciding disputes that cannot be resolved any other way. They have many advantages; in particular they give the litigants 'their day in court'. But are they the only, or necessarily the best, way? 5 October 2005

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