Tax Credits: Navigating HMRC
This section of the website explains the function of different parts of HMRC in relation to tax credits.
Her Majesty’s Revenue and Customs (HMRC)
HMRC is a non-ministerial government department which means that they do not operate under the day-to-day control of a government minister. The Queen appoints Commissioners who have the responsibility for the administration of the Department. The Commissioners are responsible for delivering the objectives established by the Chancellor, this includes the administration of the tax credits system. HMRC publish an organisational chart that shows board members and their responsibilities.
Pre November 2016 – Benefits and Credits
Prior to November 2016, HMRC was structured around four operational groups, each led by a Director General. B&C was one of those operational groups and was led by Nick Lodge (Director General).
B&C was the part of HMRC that is responsible for tax credits, child benefit, guardian’s allowance and tax-free childcare.
Post November 2016
In November 2016, HMRC underwent a reorganisation. Benefits and credits was split up with tax credit strategy and policy moving to sit under the Director General Customer Strategy and Tax Design and the operational side of tax credits moving under the Director General Customer Services.
Tax-free childcare and Universal Credit have moved under the responsibility of Director General of Transformation.
Tax Credit Office (TCO)
The TCO is responsible for many of the operational parts of the tax credits system and back office processes. The TCO process claims, carry out compliance checks, deal with disputes, appeals and complaints, amongst other things.
Generally, the TCO are a ‘back office’ which means that they don’t interact with claimants in the same way that advisers on the tax credits helpline do. Normally, contact with the TCO is with a specific TCO worker about a specific issue, such as an appeal or a compliance investigation.
HMRC’s tax credits helpline advisers send referrals to the TCO for issues that they cannot immediately deal with such as backdating and notional offsetting requests.
Debt Management (DM)
DM is the part of HMRC responsible for collecting debt owed to the department. This includes tax credits debt as well as normal tax debt. Tax credits overpayments start out with the TCO but after an initial attempt at recovery the debts are passed to DM or sometimes private third party companies..
HMRC have a network of contact centres that deal with telephone calls from claimants. Often referred to as the tax credit helpline (0345 300 3900 or 0345 300 3909 for textphone), it is actually a group of contact centres spread across the UK who deal with calls to the main helpline number.
The tax credit helpline escalate cases to the TCO if they cannot deal with a particular issue.
HMRC Enquiry Centres (EC)
HMRC have closed their offices across the country that were referred to as enquiry centres. HMRC can still provide limited face to face advice or home visits where appropriate and only by appointment, for those identified as needing extra support (using HMRC criteria) in their dealings with HMRC. This is through the Needs Enhanced Service. See contacting HMRC about tax credits for more information.
Updated 4 January 2017