Minutes of the Tax Credits Consultation Group Meeting 12th July 2006

Attendees

HMRC Representatives

Nigel Jordan (Chairman)
Trish Dagg (Secretary)
Irenka Timlin
Chris Fox
Vince Groome
Keith Golding
Paul Lanser
Allison Lyons
Louise Clayton
Joe Houghton
Annie Bush
Adrian Dixon
Annette Matton
Simon Williams

DWP

Roger Pugh

Representatives

Angela Gillon - Gingerbread
Victoria Todd - LITRG
Andy Platt - NAWRA
Liz Lathwood - CIOT
Katie Lane - Citizens Advice
Oliver Blaiklock - One Parent Families
Joyce Humphrey - TaxAid
Beth Lakhani - CPAG
Jane Moore - ICAEW
Peter Gravestock - ATT
Jane Hayball - LGA
Fran Robinson - LCC Welfare Rights
Lindsay Isaacs - Citizens Advice Scotland
Robin Williamson - LITRG

HMT

Catherine Webb

The 2003-04 Random Enquiries Programme

Fraud and Error statistics have been published on the HMRC website, following an announcement by the Paymaster General. HMRC’s accounts for 2005-06 and the NAO Standard Report have also been published.

HMRC described how the Random Enquiry Programme had been carried out and highlighted some of the key results.

DWP issues

  • Review of communication products

DWP advised that a review recently carried out recommended:

  • A revised suite of leaflets
  • Complementary interactive information on the website

The proposals were under consideration, before they could be formally accepted.

HMRC and DWP would be working in partnership to provide joined-up information to help customers understand what they were entitled to. It was noted that references to tax credits already exist in DWP literature, but it would be useful to have a package of cross-departmental information. DWP currently have contacts within HMRC to ensure information (and use of language) is consistent across benefits and tax credits literature.

DWP has prepared improved guidance for staff on disclosure of information to intermediaries. The guidance reinforces the principle of implicit consent, and focuses on what information can be disclosed, and what information should never be disclosed. The guidance would be available on the DWP website on the section for Advisers.

  • IS/JSA Fast-track

The e-portal between JC+ and HMRC is in effective use for fast-track claims. From 22/5/06 to end June around 10,500 claims were processed and increased use of the e-portal has been encouraged.

A number of Representatives queried the length of time to initiate payment once a fast-track claim had been processed, and what level of service could be expected from HMRC and Job Centre plus. HMRC reported that payment should routinely be made within 7 days of the claim being submitted on the e-portal. If Representatives had any examples where this was not the case, details could be provided and HMRC and DWP would review the position.

Update from the VCS and HMRC workshop

The 2 areas discussed at the workshop were

  • How HMRC and the VCS could work together in the future
  • What support could HMRC offer the VCS through printed material, Website etc

HMRC are considering how these themes will be taken forward, and further updates will be given in due course.

Update from Contact Centre

So far this year, Contact Centre staff had answered 99.6% of callers per day, within their targets. Contact Centre anticipated that call volumes would be high during the renewal period but had plans to manage the traffic effectively.

One of the Representatives mentioned that advice provided by helpline advisers regarding Foster Care, was variable. HMRC would remind advisers to check the guidance and follow the correct procedure. HMRC agreed to include guidance in FAQs on the website.

Debt Management

Wherever possible HMRC allowed time to repay and customers generally stick to the arrangements agreed.

For those customers where no payment, or time to pay arrangements, had been made, HMRC are now commencing recovery action. Customers are being contacted and encouraged to make payment or arrangements on a ‘time to pay’ basis.

Representatives felt that both parties should be pursued when recovering overpayments from couples who have separated.

Update on TCO work

TCO were making good progress in many areas, balancing the various items of the work that need to be done.

The new complaints-handling process, which was introduced in April, appeared to be working well. HMRC try to make contact with customers by telephone in the first instance, in a bid to clear the complaint.

Voluntary Sector tax credits funding for 2006 / 2007

HMRC explained that funds of £750,000 are available for 2006/07. Funds totalling £188,000 have been approved so far, and bids for a further £666,000 are currently being considered. The funding guidance can be found on the website under the voluntary sector pages. HMRC will consider putting a link to this from the tax credits website.

Queries from Representatives

  • Initial entitlement – A Representative queried helpline advice regarding entitlement. Some customers have been told that they have no entitlement to tax credits, based on their current year’s income, when in fact they do have (if only for a limited period) as the initial assessment is based on the previous year’s income. HMRC advised that the guidance was correct and advisers will be reminded to read the information available.
  • Overpayments – Representatives felt that notional entitlement should be calculated for claims made by a new household and offset against any overpayment arising on the previous household claim when there are changes in household e.g. a couple splits up. HMRC said they would look at the position and discuss further at a future meeting.

A Representative suggested that, where ‘nil income’ had been taken into account in the calculations, but the correct amount of income had been shown on the award notice, it was not acceptable for the disputed overpayments team to refuse to write-off these overpayments. In his opinion they were an official error and should be dealt with as such. HMRC confirmed that each case would be considered on its own merits, taking into account all the facts and circumstances and in accordance with COP 26.

  • Payment issues – A Representative mentioned a customer who had received multiple cheques, without any award notice or letter of explanation explaining what period the money covered. HMRC thought this was o one-off – they explained that manual payments were made for varying reasons and were usually prompted as a result of customer contact. Letters were generally sent to set out the position so that the customer knew what was being done and what they would receive and when.
  • Backdating – Representatives mentioned that there were a number of cases
    • where refugee status had been confirmed but as yet, payment has not been backdated
    • involving claims from girls who were children in their parents’ award.

The Representatives agreed to provide specific details of the cases in question and HMRC will check what is happening and ensure they are dealt with.

  • Disputed overpayments and appeals – A Representative felt that cases where the customer had written to TCO to dispute an overpayment, and was also questioning the actual amount overpaid, should be referred to the Appeals Team as they were an ‘entitlement issue’. HMRC felt that customers querying the amount overpaid were not necessarily questioning entitlement. The Representative agreed to forward details of the particular case.

HMRC said that if an ‘appeal’ received was in fact a ‘disputed overpayment’ this would routinely be forwarded to the disputed overpayments team and vice-versa to ensure they were dealt with appropriately.

HMRC confirmed that, in cases where an appeal against the decision on entitlement is made, a form TC846 will also need to be submitted in order to suspend recovery of any overpayment.

Intermediary Authorisation

HMRC are working towards a ‘joint authorisation’ process for both Child Benefit Office (CBO) and Tax Credit Office (TCO) customers. The desired outcome would be to give customers the opportunity to authorise agents or intermediaries to act on their behalf when dealing with CBO, TCO, or both.

A Representative mentioned that form 64-8 was for professional agents and would be available shortly for long-term authorisation for tax credits issues. He reminded the group that where circumstances required a ‘one-off’ authorisation, the form 64-8 should not be used.

Working Group updates

  • Website – HMRC continue to work on improvements to the website. Developments are underway to improve the Child Benefit website and improvements are expected over the next few months.
  • Quality of correspondence – HMRC are looking to improve the explanations in correspondence to customers about the recovery of disputed overpayments.
  • Appeals – A lot of progress has been made within this working group. It has been agreed that the group does not need to meet again until feedback is available on how the current system is working.
  • DLA – Keith Golding has recently taken the lead on this working group and will issue an update to the group in the next few weeks.

Any Other Business

A representative from CIOT announced that she would no longer be working in London therefore this was her last meeting with the TCCG. HMRC thanked her for her valuable contribution and wished her luck for the future.

HMRC advised the date of the next meeting was 13th September 2006.