Tax credit delays mount

By Simon Gompertz

People are still waiting for payment

The Inland Revenue has admitted that 18,000 people are waiting for their tax credit payments - even though they applied before the end of January.

They were told they would receive their money in April or May.

More than 250,000 applicants who applied late have also not received their payments.

Applicants are besieging their local tax offices or making fruitless phone calls from home in an attempt to get the money owed to them.

For weeks, the Inland Revenue has said that people who'd submitted complete applications in good time should be getting the money.

Complaints

But Working Lunch viewers know different.

Tracy Goodlad from Manchester who has three children applied for tax credits before January 2003.

We're paying for numerous phone calls to the helpline. Also we've got in trouble with debt

Tracy Goodlad

Her file on the Inland Revenue's computer shows the wrong name and says she has no children.

Her partner is taking unpaid time off to collect emergency payments

"We're paying for numerous phone calls to the helpline. Also we've got in trouble with debt... we were going without for quite some time," she says.

Fed up

John Davies from Derby has one daughter. He applied for tax credit in October, 2002.

It's a disgrace. It's now eight month's since they acknowledged my application

John Davies

However, the Inland Revenue's computer removed his daughter from his application, so the application was subsequently terminated.

He's fed up with hearing from ministers that people who've put in valid applications are already being paid.

"It's a disgrace. It's now eight month's since they acknowledged my application," he says.

Shortfall

Rebecca Set has another common problem - she has been paid some money but far too little because she can't get the Inland Revenue to take account of a drop in the family income.

All these applicants tell the same story - they've done everything right at their end.

It's the Inland Revenue which has been making mistakes.