Tax Credit Hotline Facing 'Last Minute Rush'

The special hotline operated by HM Revenue & Customs (HMRC) for people to renew their tax credits is at risk of being jammed by callers, the BBC reports.

With the deadline for renewals falling today, many claimants are leaving it late in confirming their incomes for the 2007/08 tax year - and are putting the system under some strain as a result. Many have been spurred into action due to the fact that, should they not renew, their credits will be cancelled and they will have to pay more to HMRC in taxes.

The credits function as a kind of tax break for vulnerable groups, including pensioners and young families on low incomes. Around £65 billion has been paid out by HMRC since they system started five years ago - and one in three Britons, or 20 million people, currently claims them.

However, the tax body has been beset by reports of customers experiencing excessive bureaucracy when they try to claim money back for any accidental overpayments. Speaking to the broadcaster, John Whiting at accountant PricewaterhouseCoopers suggested that these problems had undermined public confidence in the tax credits.

"It does take a good deal of effort to claim…the HMRC do try hard to help people, but they require a lot of information," he explained. "Because [the credits are] geared to your income they need all your income details, and not just for you but for your partner."