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Tax Credits

Treasury written question – answered on 27th October 2005.

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Photo of Frank Field Frank Field Labour, Birkenhead

To ask the Chancellor of the Exchequer if he will make a statement on the recent changes to the tax credit computer system which provide information on processing errors with tax credit awards.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

holding answer 13 October 2005

The problems that occurred at the time tax credits were introduced have been addressed and the IT system is now stable and operating well in terms of speed and accessibility. Having established the integrity of the IT system and significantly improved its performance, the priority for HMRC must be to maintain that and make sure that further IT changes take place in an orderly way. Further improvements to the IT system remain a priority, however, and HMRC is working to create a more flexible IT system that will allow improvements to be made much more quickly.

HMRC are also working to improve their management information systems to help identify problems with the IT system earlier.

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