Businesses mislead by HMRC

Date: 22nd February 2010

An overly simplified marketing campaign is giving employers a "false impression" about HM Revenue & Customs' new Tax Credit regime.

This is the view of the Low Income Tax Reform Group (LITRG), which said the "highly-complex" issue should be explained fully in the campaign.

According to the LITRG, by simplifying the message HMRC is alienating certain groups of people who may not realise that they are entitled to claim.

The group raised concerns that details in HMRC's latest Employer Bulletin, which show that employees of a certain age and earning a certain salary, are too specific and make it seem that others are not entitled.

"We have raised these issues for the last three years and each time HMRC pat us on the head and say that we do not understand marketing," said the LITRG.

"That may be so, but we see too many people who do not claim tax credits when they are entitled to do so. If HMRC are going to be simplistic in their marketing then we want them to invite as many people as possible to test whether they are entitled or not."