HMRC errors costing taxpayers billions, say MPs

clock •

A failure by HM Revenue & Customs (HMRC) to reduce errors and fraud in the tax credit system has "cost the taxpayer dear", a group of MPs said, after the tax authority admitted it would miss its target by £5bn.

HMRC had expected to save £8bn by 2015 from reducing errors and fraud in the administration of tax credits, but it said it now anticipates it will save £3bn. The revelation comes in a report by the Public Accounts Committee (PAC), due out on Wednesday, which labels the continuing high levels of fraud and error as "hugely disappointing and extremely poor". Committee chairman Margaret Hodge will say the failings show HMRC did "not properly understand which actions are effective in dealing with these issues". "They now say they will only save £3bn and in 2011-12 wrote off £1.7bn of ta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FOS partially upholds complaint against SJP for failing to provide annual reviews

FOS partially upholds complaint against SJP for failing to provide annual reviews

SJP failed to provide five annual reviews for client

Sophia Panayi
clock 23 September 2026 • 3 min read
FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

Regulator's Kate Tuckley gives update

Isabel Baxter
clock 08 September 2026 • 3 min read
DB transfer adviser hit with provisional FCA ban and £742,700 fine

DB transfer adviser hit with provisional FCA ban and £742,700 fine

Daniel Thomas advised 53 clients, including four British Steel scheme members

Sophia Panayi
clock 03 September 2026 • 2 min read