HM Revenue and Customs and Concentrix end tax credit contract

Dear Ms Mordaunt,

Jane Ellison MP, Financial Secretary to the Treasury, has just made a Written Ministerial Statement to the House of Commons. This has provided an update to MPs on the announcement that HMRC has ended our contract with immediate effect with Concentrix, the company that provides additional capacity to check tax credits claims and reduce error and fraud in the system.

On 13 September we announced that we would not renew our contract with Concentrix after its scheduled expiry in May 2017. HMRC also took back 181,000 cases from Concentrix to resolve these as quickly as possible for customers, and these are all now finalised.

After discussions since this announcement, and having evaluated all options, we have agreed that it would be in both parties’ interests, and in 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 about £32.5 million. Around 250 Concentrix staff have transferred to HMRC and will remain in Belfast, working in HMRC offices.

Your constituents do not need to take action as a result of this change, other than to follow any instructions they receive from HMRC.

If you are experiencing difficulty or need support around these matters, please contact Penny Mordaunt MP on 02392 375377 or email penny.mordaunt.mp@parliament.uk