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HMRC and Concentrix end tax credits contract

Press Release   •   Nov 11, 2016 17:25 GMT

HM Revenue and Customs (HMRC) and Concentrix have agreed to end, with immediate effect, the contract through which Concentrix provided additional capacity to check tax credits claims and reduce error and fraud in the system.

On 13 September, HMRC announced that it would not extend the contract with Concentrix beyond its scheduled expiry in May 2017. Following further discussions since this announcement and having evaluated all options available, we have agreed that it would be in both parties’ interests and those of tax credit customers to end the contract early.

HMRC has secured £193 million in estimated savings for the Exchequer, and the amount paid to Concentrix over the life of the contract has been around £32.5million. Around 250 Concentrix staff have also transferred to HMRC and all 181,000 cases transferred from Concentrix to HMRC have been finalised.

Jon Thompson, Chief Executive of HMRC, said:

“We have reached agreement with Concentrix to exit this contract early. HMRC’s dedicated staff have cleared all of the cases transferred from Concentrix while striking the right balance in both providing the standards of service that customers rightly expect and bearing down on error and fraud in the tax credits system.

“This is the right outcome for customers and for the taxpayer. I’m also pleased to receive 250 Concentrix staff, who will help us to deliver our priorities, offering job security to them well beyond the scheduled expiry of the contract in May 2017.”

Customers do not need to take action as a result of this change other than to follow any instructions they have or will receive from HMRC.

Notes to Editors

1.Payments to Concentrix were reduced where performance and customer service levels were not met. Over the lifetime of the contract, HMRC has secured a significant £193 million in estimated savings for the Exchequer, the amount paid to Concentrix over the life of the contract has been around £32.5million.

2.All 181,000 cases HMRC took back from Concentrix have been finalised.

3.Around 250 Concentrix staff have transferred to HMRC. Concentrix started formal discussions with this group of staff on the transfer to HMRC on 20 October 2016 under the Transfer of Undertakings (Protection of Employment) Regulations 2006, the contracts of staff carrying out this work are also transferred to HMRC.

4.The staff who have moved to HMRC have received further training and support to help HMRC strike the right balance in ensuring good customer service and bearing down on error and fraud in the tax credits system.

5.Since 2011, HMRC has reduced error and fraud in the tax credits system by £900 million. In 2014-15, the latest year for which statistics are available, the level of tax credit error and fraud favouring the claimant remains close to the lowest level since tax credits were introduced in 2003, and below our target at 4.8% (£1.37 billion).

6.Customers can contact HMRC tax credits helpline on 0345 300 3900.

7.Follow HMRC’s Press Office on Twitter @HMRCpressoffice

8.HMRC’s Flickr channel

Issued by HM Revenue & Customs Press Office

HM Revenue & Customs (HMRC) is the UK’s tax authority.

HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.