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!


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...