Tax credit system is flawed (From Bradford Telegraph and Argus)

Tax credit system is flawed

8:01am Monday 26th April 2010 in Our View By Telegraph & Argus

The tax credits system is a great boon to many families and is, in theory at least, an excellent way to encourage people with children to go back to work.

However, as has been seen many times, the system can be a little flawed and many people are massively overpaid.

These are not cases where people have dishonestly claimed what they are not entitled to or tried to fox the system to get extra cash.

The tax credits programme involves telling the Government exactly what you earn and what hours you work, and they do the calculations and tell you what you are owed.

Perhaps in the case highlighted today alarm bells should have rung because of the size of the award.

But most people would take at face value the tax credits proposal if they have honestly answered the questions on the application form.

There is something very wrong if demands for repayment mean that the person who has been overpaid now cannot afford to work and pay for childcare – that defeats the point of the whole tax credits system.

It is to be hoped an amicable way forward is achieved in this case, and that whoever is in charge after the General Election finds some way to create a more fault-free tax credits service.