Thursday, May 22, 2008

Tax credit income disregard!?!

How has HMRC managed to save the taxpayer £700m by reducing tax credit overpayments last year?

Simple, by increasing the so-called "tax credit income disregard" from £2,500 to £25,000 before an overpayment is recognised!

3 comments:

Mark Wadsworth said...

Yup, Tax Credits are effectively based on the lower of this year's and last year's income, which has even worse unintended consequences that you might first think.

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Letters From A Tory said...

Unbelievable.