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Treasury criticised for 'misleading' advice

Photo credit: Manx Radio

Issues found with National Insurance Holiday Scheme 

The Tynwald Ombudsman for Administration has criticised Treasury for giving the wrong information about a scheme offering refunds of National Insurance to new residents.

The case involved a newcomer who applied for a refund under the National Insurance Holiday Scheme. 

Treasury rejected the claim saying it arrived after the legal deadline.

An applicant argued they had relied on official government guidance, which they said failed to make the deadline clear, and they believed they had followed the rules as written.

Paul Beckett found that the government web page, guidance note and application form 'are not fit for purpose and evidence of maladministration is present, in the form of giving misleading or inadequate advice'.

The report said the guidance note failed to point people to the actual law and that the government website was wrong to describe it as containing 'full details' of the scheme.

Mr Beckett also found that one Treasury officer's letter contained an inaccurate quote from the guidance and that advice given to the applicant was 'in part, both misleading and inadequate'.

Treasury's own internal review had recommended that 'clear reference to the legislation is added to the application form, website page and practice note where possible'.

The ombudsman cannot award compensation or force Treasury to change its decision.

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