Revenue received tax credit warning

Some mothers are still waiting for their credits

The Inland Revenue may have been warned last December that the introduction of the new tax credit regime faced problems, it has emerged.

IT specialists at the Office of Government Commerce (OGC), a part of the Treasury, warned that the new tax credit system was "among the highest across government for assessed risk".

Since the introduction of the tax credit on April 6 the regime has been dogged by problems.

Last week the Conservatives estimated that some 800,000 had not received their money but the Inland Revenue insist that the figure is far lower.

And BBC News Online has received a large number of emails from readers who have become increasingly frustrated by the non-payment of their credit.

But the government has denied that there is a tax credit crisis, even though the National Audit Office announced that it was going to investigate the way in which the system was introduced.

The confidential OGC report, revealed in Computer Weekly magazine, warned of the "very large and complex" nature of the tax credit introduction and the dangers of relying on an unprecedented level of co-operation across government departments.

What is more, the IT specialists at the OGC were concerned that the new tax credit computer system should not be rushed in to use.

However, an Inland Revenue spokesperson told BBC News Online that the memo had been taken out of context and the OGC had in fact concluded back in December that tax credit : "Was well on the way to successful delivery."

In addition, the Revenue claimed it had got over the worst as far as paying the tax credit was concerned.

"We have processed more than three and half million out of four million claims," the spokesperson said.