Thousands miss out in marriage tax f iasco
THOUSANDS of couples have missed out on David Cameron’s marriage tax break because of a computer fiasco.
Elderly and low-income families are among those who have been unable to claim the £212 perk.
The problem centres on a £25million computer system called Verify that is supposed to make registration easy.
Instead, applicants have given up in confusion. To make matters worse an HM Revenue & Customs helpline has offered no support. The agency’s latest computer shambles has seen:
Claimants being asked to provide identity documents they don’t have;
Lengthy delays in handling successful cases;
A dedicated helpline being delayed until September;
Official emails that resemble those sent by fraudsters.
Last night Labour MP Margaret Hodge said: ‘ HMRC is cutting corners without putting in place the right infrastructure – and it means families can’t claim what they should be entitled to.’
One of the Prime Minister’s flagship policies, the marriage tax break was announced in the 2014 budget by George Osborne after years of pressure from family campaigners.
It allows one partner to trans- fer £1,060 of their unused tax allowance to the other – saving them £212 in tax. The ‘giver’ must be a non-taxpayer and the ‘receiver’ on the 20 per cent basic rate.
It will most benefit traditional family arrangements where one parent stays at home or works part time to look after children. More than four million married couples and 15,000 civil partnerships could benefit.
Once an application is received HMRC must adjust the tax codes of the highest earner to ensure that they pay less tax.
Applications to claim the allowance opened in February and couples were asked to register online.
But problems with the application process threaten to scupper the tax break – chiefly through the need to check identities.
Many claimants were bamboozled by an email asking them to give what appeared to be personal financial details – and took it to be fraud.
They were then asked for details of their credit cards, mortgage, passport or a photo driving licence – information many older couples lack.
Other a ppli c a nt s were rejected because they lacked a mobile phone to receive a security code by text message.
Some who registered online for the allowance in February have yet to hear a word from HMRC about applying – despite a promise they would be in touch within 14 weeks.
Carol Figg, 68, a retired child nurse from Bristol eligible for the full £212 tax break, said: ‘I
‘Families can’t claim their due’
couldn’t get the transfer from my husband John as I don’t have a driving licence or a credit rating. I don’t have any credit cards, mortgage or loans.’
Colin Thornton, 68, a retired textile worker from Cleckheaton, West Yorkshire, and his
‘We need our money’
wife Anne fell foul of the online test because they had only the old-style paper driving licence.
He said: ‘It’s idiotic – we were effectively led up the garden path to a brick wall.’
Nick Hutchinson, 68, a retired engineer from Cumbria, tried calling HMRC to find out why he had heard nothing since February.
He said: ‘The attitude of staff on the phone was utterly indifferent to us. We are pensioners and we need our money.’
Campaigners had warned that many older and poorer taxpayers should not be victims of the Government’s move toward online services.
Last night, HM Revenue & Customs announced it was introducing a new computer system to help couples who cannot use Verify. If they continue to be baffled they can apply directly on the HMRC website, or call in a claim.