Tax Credit Claimants and Fraud.
- 3 December 2010 09:2082973Information just through from HMRC
Note: There are 700 Tax Credit ( working tax credit ) Claimants in Dover
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Tax credits claimants in Kent are being reminded that they must let HM Revenue & Customs (HMRC) know within one month of their childcare costs falling or ending. Deliberately failing to let HMRC know when renewing a claim could constitute criminal fraud and result in prosecution.
As part of a wider government crackdown on error and fraud in benefits and credits, letters will start to land on doorsteps this week asking claimants to contact HMRC if their childcare costs have changed, for example, because their child has started school.
Because tax credits are flexible, the amount claimants receive changes as their circumstances alter.
Changes to childcare that claimants need to tell HMRC about include:
· Average childcare costs end or go down by £10 a week or more.
· Their childcare provider stops being approved or registered.
· They start getting childcare vouchers from an employer.
· They start getting early learning or nursery education support.
Some 345,000 or 4.5 per cent of all tax credit awards in 2008/09 had errors relating to childcare. The potential size of this loss to the Exchequer is £380m.email: dover7@msn.com - 3 December 2010 10:1482983Well the new government is definitely sweeping through the system with a new broom, but while not wanting to fall out with HMRC ( I wouldnt dare!) isnt this chasing funds again at the poorer end of the equation. There is so much tightening at the bottom end that it could be cause for considerable alarm...while the bankers escape. Thats often said I know regarding the bankers...its become a bit of a cliche...but its still the case though.
squeeze 'em til they pip!email: dover7@msn.com - 3 December 2010 12:5483022Do they think we are daft or something? and yes its always the poor people who get the most hassle from these guys but different if they owe you money!
- 3 December 2010 13:0183023in fairness they are cracking down on money deposited abroad and not declared for tax purposes.
having said that the tax credit system is very complicated and i think that most money over claimed is a result of this rather than fraud. - 3 December 2010 13:3783027Ther is also a lot that goes unclaimed because of the complexities.
I am always trying to get clients to claim what they are entitled to but often they dont want the hassle. The whole system is a complex ill-concieved mess.