‘Loss of confidence’ in Concentrix led to tax credits decision, HMRC chief executive says

A loss of confidence in the performance of Concentrix led to the decision not to extend its contract, Jon Thompson, HMRC chief executive and permanent secretary, told the House of Commons Work and Pensions Committee. Thompson spoke during an evidence session on October 13, two days after the Public Accounts Committee (PAC) opened an inquiry into HMRC’s performance. The PAC has invited submission of written evidence by midday on October 18.

HMRC engaged Concentrix’s Belfast office to check entitlement to tax credits. In the middle of August, Concentrix’s performance in answering the telephone was “dramatically reduced,” with fewer than 10 percent of calls being answered, and the amount of time taken to get through to staff rose to more than 30 minutes, Thompson said. Philip Cassidy, Concentrix’s senior vice president, told the committee that the company apologised to four tax credits claimants who spoke earlier in the evidence session and to “all the other [claimants] that were impacted.”

Read more: My news story for Tax Analysts October 14 (paywall).