Tax chaos due as child benefit cuts come into play

3 January 2013

Almost a third of families affected by George Osborne's child benefit swipe haven't been formally told that they'll no longer be eligible for benefits (means-tested from next Monday), which equates to more than 1.1 million families being affected and a whole load of chaos cutting loose.

HMRC have told 784,000 families that they must either stop claiming child benefit by this weekend or pay a new tax to cover the cost of the payments, however, with so many families not being told, someone is going to need a big, expensive mop to clean up the resultant mess when people realise their benefits have been stopped AND they'll be expected to pay something on top AND fill in self-assessment forms.

It has been estimated that there's around eight million people who'll have to fill in these new forms, with many of those finding the process too difficult and facing fines for late returns of their assessments.

Mike Warburton of Grant Thornton, the accountants, said: “We understood that everyone affected would receive a letter and it is a concern that people have not received the information. Many people are unaware that they will now have to complete self-assessment forms. It is disappointing.”

Barry Murphy, a tax partner at PwC, added: “The tax system seems to have grown to be overly complex. Until major reform occurs, we will have changes like this which will be complex and catch people unawares.”

All this has already been described as an "operational and reputational disaster", with the Institute of Chartered Accountants for England and Wales adding that the new legislation is "seriously flawed in principle and in practice". And yet, George thinks this is going to save the country £1.5 billion annually.

TOPICS:   Banking   Tax   Government

11 comments

  • James P.
    Got a letter last year to tell me we would no longer qualify and account balance was now £0. Got a letter before Xmas to say we owe them £303 in overpayments. Never been able to get them to answer the phone so they can go and do one.
  • I n.
    They want to stop paying for all the little fuckers that aren't born or actually in this country first before robbing the people that pay taxes to keep every other bastard nationality in benefits. If the kid isn't in this country why pay CB for it, fucking EU rules leaves us open to fraud by all those eastern Europeans who claim to have kids when they don't.
  • FormerDSGandBestBuyManager
    @I am da nuts... Did your EDL membership come through yet?
  • I n.
    @ FormerDSGandBestBuyManager Why do I need an EDL membership when voicing concerns about paying benefits to kids NOT in this country. Fucking TWAT
  • Meek
    @I am da nuts! I agree, not only is he a twat but he is thick. We are a haven for immigrants, why earn £200 a month in their own countries working as hard as possible when they can come here for a free house, healthcare, and easily earn £1000 a month doing FUCK all. This country is now a disgrace and our forefathers would be rolling in their graves at the way it's being abused.
  • Dick
    Someone that earns £50K should be able to fill in a tax return form. If it is too difficult, how the hell did they get a £50K job?
  • FormerDSGandBestBuyManager
    @I am da nuts and Meek - the BIGGER issue in this country folks is people born and bred in this country who CHOOSE not to work while preferring to rake it in in benefits and welfare.. They are a FAR bigger issue than the minority of immigrants who come to this country and claim asylum etc. FACT. Stop reading the Daily Mail and open your eyes..
  • I n.
    @ FormerDSGandBestBuyManager Fuck off benefit tourist migrants are the fucking problem we have in this country. They leave their countries and come here and do fuck all, like you say CHOOSE not to work, and get richer off our benefit system. I'd give my right bollock to live in Kensington like those fucking migrants who get council benefit for a big house and have done FUCK ALL for this country except believe they have a RIGHT to our taxes. Are you an immigrant FormerDSGandBestBuyManager ?
  • i b.
    fair play i am da nuts for speaking up i have never know this country to be in such a mess no jobs unless you are easten European.find the whole situation very scary as its getting harder to hear english speaking people even on a trip to town,i am not racist dont have any objection to any colour born in this country but with schools hospitals ect closing is there really enough room on this small island to let more people come on to it,working or not,the olympics was not a true picture of britain that was a showcase,let anyone in government survive on benefits for a week,scared to put the heating on or wary of going out after dark because of gun and knife crime on the increase thats the true picture of britain to be honest if i was an immigrant think i would think twice about moving here benefits or not
  • Bollockoff007
    @I am da nuts! I'd guess that such a man as yourself spends most of his time kiddy fiddling and not working.
  • Raggedy
    Oh how I've missed the cut and thrust of well reasoned, well thought out, well researched, logical and well versed debates on here. The witty retorts, the counter punches, the subtly crafted turn of phrase and the delightful way facts are juxtaposed with fiction to encompass a complete demographic. I'm positively drooling here.

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