No Nonsense Press Release from HMRC
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For the attention of News and Personal Finance Desks
Date: 19 October 2010
Tax credits claimants in Kent reminded to report changes in their relationships.
Kent's 164,000 tax credit claimants are being reminded that they must let HM Revenue & Customs (HMRC) know immediately if a partner moves in or out. Deliberately failing to let HMRC know 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 personal circumstances have changed. Tax credits are flexible, so the amount of tax credits claimants receive changes as their circumstances change.
Failure to tell HMRC promptly of changes can also result in an overpayment, which means claimants will have to pay back the money they have received. They may also face a penalty or, for fraud, prison.
Some 150,000 or 2.0 per cent of all tax credit claims in 2008/09 are estimated to be incorrect single claims. This represents a potential loss to the Exchequer of £580m.
A breakdown of the area's tax credit claimants:
Kent 164,000
Medway Unitary Authority 28,800
Ashford 11,900
Canterbury 12,400
Dartford 9,200
Dover 11,000
Gravesham 10,400
Maidstone 13,100
Sevenoaks 7,800
Shepway 11,100
Swale 14,200
Thanet 15.900
Tonbridge and Malling 10,100
Tunbridge Wells 8,100
Exchequer Secretary to the Treasury David Gauke said yesterday:
"There has been too much error and too much fraud for too long in our benefits and tax credits systems. It is unfair, unaffordable and unacceptable. Today we are shining a light on the problem across the system and setting out a radical, cross-Government solution. We simply have to make every penny count - and that includes going after the cheats at every level."