News

Troubled tax credit site to be re-opened

The government has said its troubled online tax credits system will re-open next year, after being closed down in 2005 after being targeted by fraudsters.

Paymaster general Dawn Primarolo has told the parliament's treasury committee that she expects the site to be open for claims in 2008, after new security technology is introduced.

The tax credit e-portal was shut down in November 2005 after falling victim to organised criminals.

The tax credits system itself suffered successive technology problems, and led to outsourcer EDS eventually being replaced by Cap Gemini.

The technical problems contributed to tax credit overpayments estimated at £2bn, although most of this money is gradually being clawed back from the recipients through benefit cuts.

MP slams slow payment of tax credit compensation

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