‘Free money’: £4bn lost to fraud and error on flagship HMRC ‘innovation’ scheme

https://www.theguardian.com/politics/article/2024/aug/03/free-money-4bn-lost-to-and-error-on-flagship-hmrc-innovation-scheme

Posted by lighthouse77

5 Comments

  1. Created_User_UK on

    >“There was an industrialisation of the claims process with all these advisers saying they were experts and could sort the claims for between 20% and 30% of the value,” Hailey said. “It was the wild west. These advisers were cold-calling firms and saying, ‘you don’t think you’re doing R&D, but we can help you’.

    This is a side effect of austerity and government cutting jobs. They literally don’t have the manpower to carry out the tasks required. So in response private sector charlatans (usual the serco, Crapita, G4S types) come in and fleece them by doing the job even worse for a fee

    Funnily enough, as always with austerity, cutting jobs ends up costing more. HMRC cut another 1,000 jobs last year and yet the wage bill went up by £5million due to increased overtime costs. We can see the similarities with the mishandling of the NHS due to austerity: pay restraint means more agency staff are required who cost twice as much as contracted staff.

    Neo-liberalism has been, and will continue to be, a disaster and yet all the political parties are wedded to the ideology.

  2. The more I hear about this kind of government waste, the more it points to the ‘hard working civil service’ having a big problem with either incompetent people employed in a lot of key roles, a really broken system that’s incapable of functioning in an efficient, effective manner… or both. It’s not just a new problem caused by the Tory government problem either. Something really doesn’t work in the way we do things.

  3. ApprehensiveBlood618 on

    It would not be so funny if it was not so predictable and stupid. It really would not matter who was in power the very scheme was going to fail as all it’s doing is picking winners and losers, holding up the unproductive and those with bad ideas at the expense of the productive and those with good ideas.

    It was always a net loss, even if it was run well.

  4. Oh look, it’s something else that could have easily funded teacher and doctor pay rises, just spanked up the wall by Tory “gifts” to their friends.

  5. Trynottobeacunt on

    Meanwhile I’m paying like 20-40% tax on less than 20k a year total earnings…. because apparently hmrc have no idea how to deal with freelancers