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31 Jan 2006 : Column 409W—continued
Tax Arrears
Harry Cohen: To ask the Chancellor of the Exchequer pursuant to the answer of 23 January 2006, Official Report, column 1735W, on tax arrears, in how many cases over the last two years where a review has been notified to a taxpayer and it subsequently resulted in a bill to the taxpayer, interest has not been levied; what proportion of such cases that represented; and for what reasons the interest was not levied. [46060]
Dawn Primarolo: The information is not held centrally and can be obtained only at disproportionate cost. However, normally where an adjustment has been made to an assessment of tax, the interest follows automatically, and is calculated and charged by the computer systems of HM Revenue and Customs.
Harry Cohen: To ask the Chancellor of the Exchequer pursuant to the answer of 23 January 2006, Official Report, column 1735W, on tax arrears, if he will make it his policy to notify the taxpayer (a) that interest will be charged, (b) of the date it is to be levied from and (c) the interest rate, at the time the review is notified; and if he will make a statement. [46084]
Dawn Primarolo: Whenever an enquiry is opened into a tax return, HM Revenue and Customs (HMRC) sends the taxpayer a code of practice with the opening letter. The code of practice says that
interest will be charged from the original due date on any tax paid after that date. This includes additional amounts as a result of our enquiry."
Rates of interest are available from the HMRC internet website: http://www.hmrc.gov.uk/rates/interest.htm or from any HMRC local office.
Harry Cohen: To ask the Chancellor of the Exchequer pursuant to the answer of 23 January 2006, Official Report, column 1735W, on tax arrears, what (a) the longest and (b) the average period was between the date interest was charged from and the date the review was made known to the taxpayer in relation to (i) businesses and (ii) individual taxpayers in the last period for which figures are available; and what the amount of interest charged for the period was in each case. [46120]
Dawn Primarolo: The information is not held centrally and can be obtained only at disproportionate cost.
Harry Cohen: To ask the Chancellor of the Exchequer pursuant to the answer of 23 January 2006, Official Report, column 1735W, on tax arrears, whether the rate of interest charged is the same in every case; how it is determined; and what the rate is. [46121]
Dawn Primarolo: The rates of interest are laid down by statutory formulae. The rates are available on the internet website of HM Revenue and Customs (HMRC): http://www.hmrc.gov.uk/rates/interest.htm or from any HMRC local office.
Tax Credits
Dr. Kumar: To ask the Chancellor of the Exchequer how many families in (a) England, (b) the Tees Valley and (c) Middlesbrough South and East Cleveland were in receipt of (i) less than £1,000, (ii) between £1,000 and £2,500, (iii) between £2,500 and £5,000, (iv) between £5,000 and £10,000, (v) between £10,000 and £20,000 and (vi) above £20,000 in working tax credits and child tax credits in each of the last three years. [45106]
Dawn Primarolo: The average number of in-work families in England in 2003–04 by level of annualised finalised tax credit entitlement is shown in the following table:
(29) Annualised 2003–04 entitlement based on circumstances throughout the year and finalised 2003–04 incomes. (For further details see introduction of 'Child and Working Tax Credit Statistics Finalised Annual Awards 2003–04').
(30) Excluding families with awards tapered to zero.
(31) Sample size too small to provide a reliable estimate.
The average number of in-work families in Tees Valley 1 in 2003–04 by level of annualised finalised tax credit entitlement is shown in the following table:
1 Tees Valley is defined as the sum of the unitary authorities of Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton-on-Tees.
(32) Annualised 2003–04 entitlement based on circumstances throughout the year and finalised 2003–04 incomes. (For further details see introduction of 'Child and Working Tax Credit Statistics Finalised Annual Awards 2003–04').
(33) Excluding families with awards tapered to zero.
(34) Sample size too small to provide a reliable estimate.
The average number of in-work families in Middlesborough South and East Cleveland in 2003–04 by level of annualised finalised tax credit entitlement is shown in the following table:
(35) Annualised 2003–04 entitlement based on circumstances throughout the year and finalised 2003–04 incomes. (For further details see introduction of 'Child and Working Tax Credit Statistics Finalised Annual Awards 2003–04').
(36) Excluding families with awards tapered to zero.
(37) Sample size too small to provide a reliable estimate.
Mr. Ruffley: To ask the Chancellor of the Exchequer when the online system for claiming tax credits will become fully operative. [45222]
Dawn Primarolo: HMRC take fraud very seriously and as part of their ongoing compliance work have identified and stopped attempts to defraud the tax credit system by making claims through the tax credits e-portal. In the light of this, HMRC has closed the tax credits e-portal while it makes enhancements to ensure that the system remains secure.
The current plan is a series of strengthening measures to be implemented through planned IT releases and HMRC will reopen the portal once this work provides the necessary assurance.
Mr. Laws: To ask the Chancellor of the Exchequer if he will commission research into the impact of recovery in year of overpaid tax credits. [19720]
Dawn Primarolo: I refer the hon. Member to the answer given to him on 30 November 2005, Official Report, column 518W.
Mr. Paul Goodman: To ask the Chancellor of the Exchequer how many software errors generating incorrect payments have been discovered in computer systems used to administer tax credits in each year for which figures are available. [43662]
Dawn Primarolo:
It is not possible to provide the information in the format requested.
31 Jan 2006 : Column 412W
Details of errors were included in the Report of the Comptroller and Auditor General for 2003–04, which can be found with the Board's Annual Report and Accounts for 2003–04 at www.hmrc.gov.uk/pdfs/report2004.pdf.
Mr. Laws: To ask the Chancellor of the Exchequer (1) when his Department first became aware that personal data held by HM Revenue and Customs was being used in relation to tax credit fraud; [44973]
(2) what his latest estimate is of the cost of organised fraud of the tax credit system in each quarter since April 2003; and if he will make a statement; [45678]
(3) when HM Revenue and Customs first detected organised fraudulent use of the tax credit system; and if he will make a statement; [45691]
(4) what recommendations officials in HM Revenue and Customs made to the Paymaster General in June 2005 about organised attempts to defraud the tax credits system; and what steps were taken as a result; [45692]
(5) when HM Revenue and Customs first considered closing the e-portal to reduce the risks of organised fraud of the tax credit system. [45693]
Dawn Primarolo: I refer the hon. Gentleman to the answers I gave him on 18 January 2006, Official Report, columns 1357–58W) and 24 January 2006, Official Report, columns 2048–49W.
Mr. Davidson: To ask the Chancellor of the Exchequer (1) what sanctions are faced by individuals from other EU member states who are found to be fraudulently claiming (a) working tax credit and (b) child tax credit; [45330]
(2) if he will investigate the extent to which workers from the new EU accession countries are fraudulently claiming tax credits. [45332]
Danny Alexander: To ask the Chancellor of the Exchequer what investigation he has undertaken into possible fraud against the tax credit system by migrant workers from other EU member states; and if he will make a statement. [45306]
Dawn Primarolo [holding answer 24 January 2006]: HMRC use a number of sophisticated tools to help them detect wrong and fraudulent claims. Cases requiring compliance intervention are selected using a risk-based approach, which examines the overall features of a claim, not the individual's nationality.
In addition, HMRC also consider all allegations of fraud seriously and will investigate any matter where there is sufficient risk. Where it is established that a claimant has provided incorrect or fraudulent information, HMRC have a number of measures available to them including the use of financial penalties. In the most serious cases HMRC will investigate with a view to securing a criminal prosecution under the new criminal offence of tax credit fraud.
Mr. Frank Field:
To ask the Chancellor of the Exchequer how many (a) tax credit awards, (b) tax credit awards where the claimant was in receipt of the maximum tax credits to which they were entitled and (c) tax credit awards where the claimant received only the family element of the
31 Jan 2006 : Column 413W
child tax credit there were in 2003–04; and what the (i) total value and (ii) average award was of tax credits in each category in that period. [45836]
Dawn Primarolo [holding answer 26 January 2006]: For parts (a) and (c) I refer the hon. Member to the publication Child and Working Tax Credits Finalised Annual Awards 2003–04" (http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-annual-0304.pdf).
(b) The following shows additional analyses based on the same data, and cover only the in-work period of families with awards where the claimant was in receipt of the maximum tax credits to which they were entitled in 2003–04:
| 2003–04 | |
|---|---|
| Average number during 2003–04 (thousand) | 484 |
| Total entitlement during 2003–04 (£ million) | 3,179 |
| Average annualised entitlement (£) | 6,568 |
Anne Milton: To ask the Chancellor of the Exchequer pursuant to the answer of 12 January 2006, Official Report, column 773W, on tax credits, how many tax credit applications are being processed; and how many of these applications were received (a) up to six months ago and (b) more than six months ago. [46046]
Dawn Primarolo: At 31 December 2005, around 155,000 claims for tax credits were being processed. At 23 January 2006, around 117,000 claims for tax credits were being processed. Information about the length of time that these claims have been outstanding is not available. HM Revenue and Customs (HMRC) has Service Delivery Agreement targets for deciding tax credit claims within 5 working days and 30 working days. The Department's Annual Report reported its progress against those targets. It reported that, for 2004–05, 95.9 per cent. of all new claims, renewals and changes of circumstances were decided within 30 working days of receipt.
With the small percentage of claims that have not been decided within 30 working days, HMRC are verifying information and will be in touch with claimants to obtain further information.
Paul Flynn: To ask the Chancellor of the Exchequer (1) how many home visits were arranged by HM Revenue and Customs claimant compliance officers to investigate tax credit claims in each month of 2005; [46475]
(2) what criteria are used to select individuals for a home visit by claimant compliance officers investigating tax credit claims; [46476]
(3) what his most recent estimate is of the cost of a home visit carried out by HM Customs and Revenue claimant compliance officers investigating tax credit claims. [46477]
Dawn Primarolo: Information on the number of visits HMRC claimant compliance officers have made to claimants as part of their investigations into fraud and error is not available.
HMRC uses its discretion in each case to determine the best way to obtain the information they need during their investigations. In the majority of instances, this can
31 Jan 2006 : Column 414W
be done without the need to arrange a meeting with the customer. Where it is determined that a face to face meeting would be appropriate, HMRC give the claimant the option to meet on HMRC premises or at the claimant's home address.
Mr. Laws: To ask the Chancellor of the Exchequer (1) how many claims for tax credits were made by severely disabled adult workers without children in each month from April 2003 to January 2006; and if he will make a statement; [45679]
(2) how many claims for child tax credit for disabled children were made in each month since April 2003. [45681]
Dawn Primarolo: The characteristics of adults and children as initially captured in all tax credits claims, including rejected claims, are not available, and could be obtained only at disproportionate cost.
The numbers of tax credits awards to in-work families with particular characteristics at selected dates from July 2003 to December 2005 are available in publications on the HMRC website:
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