Minutes of the Tax Credits Consultation Group Meeting 13th September 2006

Attendees

HMRC Representatives

Nigel Jordan (Chairman)
Trish Dagg (Secretary)
Irenka Timlin
Chris Fox
Annie Bush
Adrian Dixon
Annette Matton
Russell Murphy
Alison Walsh
Liz Sands
Des Dolan
John Malthouse

DWP

Roger Pugh

Representatives

Angela Gillon - Gingerbread
Victoria Todd - LITRG
Lindsay Isaacs - Citizens Advice Scotland
Pauline Hunter - Disability Alliance
Katie Lane - Citizens Advice
Oliver Blaiklock - One Parent Families
Beth Lakhani - Child Poverty Action Group
Peter Gravestock - ATT
Fran Robinson - LCC Welfare Rights

HMT

Nick Burkitt

1. Pre Budget Report package

HMRC provided an update on three issues

  • New earlier deadline for renewals - The renewals deadline was brought forward from the end of September to 31st August this year and early indications are that it has been a success. HMRC are now well ahead with processing the renewals and the Helpline coped admirably during the shorter renewal period.

A representative asked what happened where renewals packs were sent to claimants late, or after the deadline. HMRC advised that the customer has a period of 35 days to return the form and a date is clearly shown on the renewal pack.

A representative asked if HMRC would accept ‘good cause’ if a renewal was made late. HMRC stated that good cause would be considered. However customers should be encouraged to renew ‘on time’ - if they didn’t, payment could be stopped.

  • Changes in circumstances - From November 2006 some additional changes in circumstances will be mandatory to report and, from April 2007, customers will need to report mandatory changes within one month (changed from 3 months). There was a discussion about the difficulty this could cause for people whose hours fluctuate (for example, those who have no fixed pattern of working hours such as agency workers) or who have a change of household status i.e. they begin or cease to live with a partner - there could be instances where the date of the change is not clear, particularly when the deadline is shortened to one month from April. Representatives wanted guidance and consistent advice given on calculating hours

In responding to these concerns, HMRC stated that the time to report starts from when the person became aware of the change rather when the change actually occurred, if this is later than the date the change occurred. They added that further guidance would be produced

HMRC plans to make the necessary changes to current legislation, following discussions with representatives and with lawyers.

A representative asked when guidance would be available that would clarify how to deal with certain circumstances. Information would be placed on the website in due course. A representative suggested that a leaflet be made available to give guidance on working hours. Representatives asked if they could see a copy of the existing guidance for helpline advisers on averaging working hours.

HMRC confirmed that they would not want to penalise people where the date a change occurred is not simple to determine. They will make it clear in guidance for compliance teams that they should take a reasonable approach to the date of awareness. They will be revising the compliance fact sheets for April 2007. HMRC will monitor the impact of the new changes.

From 18th September, the supermarket chain Tesco are to include a message on their 4 pint cartons of whole milk, to remind customers to tell HMRC if they begin to live with a partner. The message includes the tax credits helpline telephone number.

Representatives were handed examples of the Micro Site adverts that will be live in the near future. These will prompt people on what changes of circumstances they need to report.

Representatives expressed concern about whether the Household Notes are always completed when a call is made. They asked what guidance there was for helpline advisers on the use of Household Notes to record customer contact, and how much information the Notes could hold. In the absence of a Contact Centre representative, HMRC said they would need to check.

Linked to this representatives also raised issues around the telephone recording procedures. It appears that when Data Protection requests are made for phone calls that these are sent without any dates - in one case 3 CD’s were received with no dates. The DPU say that it is not possible to do this on the computer and it would need to be done manually but it is not current practice to do so. Confirmation of this was sought by representatives as quite often phone calls are the only evidence that claimants have informed of changes or questioned awards. HMRC agreed to provide detailed information about the call recording process.

  • Obtaining up to date information on incomes - HMRC will be looking to get updates of household income in early 2007, where a customer’s record shows no in-year figure has been reported. HMRC will write to customers showing the income details they currently held and ask claimants to call the helpline if their income now differs.

2. DWP issues

DWP are currently reviewing their leaflets and an update will follow in due course. Representatives pressed for joint leaflets where that makes sense from their perspective.

A representative mentioned that, from a small survey conducted, some customers had experienced slight delays with their claims being fast tracked. Representatives were advised to provide specific examples so that DWP could address any issues. A representative also queried whether any figures were available on how quickly payments were being made when the fast track procedure was used. HMRC will review and report back.

3. Next Software upgrade

HMRC advised representatives that the next upgrade to the IT system would be at the end of October. The Helpline will still be available although information cannot be processed whilst the software is being upgraded. Representatives will be provided with further details nearer the time.

4. TCO update

The TCO workstate is in a healthy position. A brief update of various processing times was given.

The Complex Case Team (Group 33) which is based in the TCO in Graeme House is now to be known as ‘Team 18’. This team has a good rapport with advisers.

With regards to outstanding requests for additional backdating, a 6 month plan exists and levels are expected to be lower by November.

5. Working with Local Authorities (LAs)

Some of the services provided by HMRC, DWP and Local Authorities cover the same customer base. Customers are required to negotiate differing eligibility rules and provide the same information to different parts of Government.

HMRC and DWP have recognised these difficulties and have started a number of initiatives with a number of LAs to identify opportunities for improvement where changes could be most beneficial, and what barriers there might be. Work is being carried out with the 12 LAs who have volunteered to work with us through to November, to establish areas to address.

6. Gender Equality

The Gender Equality Act is due to come into force in April 2007. Representatives would like to see the recovery of overpayments made equally from both men and women in situations where there has been a household breakdown. Discussions are ongoing and HMRC will monitor the situation.

7. Working Group updates

  • DLA - A meeting is being arranged for the end of September to bring together several strands of activity.
  • Website - HMRC have included FAQs regarding overpayments on the website. An update on progress has been sent to members of the working group and will be shared with other representatives this week. Work is ongoing on the Child Benefit website and the new pages will be launched at the beginning of October 2006.
  • Passporting Benefits - Irenka has taken responsibility for this working group and will be arranging a meeting at the end of October.
  • HMRC has been working on a ’Ready Reckoner’ with the intention of helping claimants to identify their correct entitlement. A number of alternatives are being designed and will be tested with some claimants. These will be sent to representatives for comment too..
  • Forms, notices and guidance - This new group met this week and will meet again in mid October.

8. Intermediary Authorisation

Work is continuing to provide an authorisation process for intermediaries allowing them to act on the customers’ behalf. HMRC wanted to take the opportunity to align authorisation throughout the whole of the organisation, however this is not possible at the moment. HMRC will concentrate on a joint authorisation process between the TCO and CBO for the time being, then introduce this HMRC wide. A further update will be provided at the next meeting in November.

9. Availability of claim forms

HMRC advised representatives that all orders - whether from Enquiry Centres, JC Plus, CA etc - for claim forms were handled by the orderline. They would like to understand better how CABx etc handle the stocks they hold, and whether CA advisers enter names and addresses of their clients, or hand out blank forms.

A representative raised concerns that the helpline were trying to establish entitlement prior to issuing claim forms. HMRC agreed to look at whether this is happening.

There was also a discussion about the reasons for claimant error in making claims. HMRC is looking to gather information which will help HMRC to identify improvements and thus reduce claimant error.

10. A.O.B

HMRC advised the next meeting will be held on 15th November