HMRC and Concentrix agree to end tax credits contract as watchdog investigates

HM Revenue & Customs and Concentrix have agreed to end their controversial tax credits contract with immediate effect, two months after a loss of confidence in Concentrix’s performance led HMRC to announce that it would not extend the contract beyond May 2017.

“Following further discussions since [the September] announcement and having evaluated all options available, we have agreed that it would be in both parties’ interests and those of tax credit customers to end the contract early,” HMRC said in a November 11 statement …

… The National Audit Office has announced a “factual investigation”, which is expected to report to Parliament early next year, into Concentrix’s performance. It will also examine HMRC’s management of the contract and the department’s decision not to extend it.

The National Audit Office “has turned up and is undoubtedly going to do a thorough piece of work”, HMRC chief executive Jon Thompson told the Commons Treasury Committee on October 27.

Read more: My news story for Tax Analysts, 12 November (paywall).


Update 14 November: The CIOT’s Low Incomes Tax Reform Group is calling for an urgent review of the tax credits compliance process.