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Departmental Accountancy

Volume 473: debated on Friday 14 March 2008

To ask the Chancellor of the Exchequer what changes were made on overhead apportionment between cost centres within his Department in financial year 2006-07; and what assessment he has made of the net effect on these changes on costs attributable to the provision of tax credits. (190013)

Tax credits are a priority for HM Revenue and Customs. Staff numbers increased in 2006-07, particularly to add extra capacity on the tax credits helpline. 1.3 million more calls were handled in 2006-07 than in 2005-06.

The increase in administrative costs reflects both the increase in staff numbers and a new method in apportioning overheads which in 2006-07 increased the proportion allocated to tax credits.