Fraudulent tax credit claims
Tax credit claimants are being warned that they should notify HMRC without delay if a partner moves in or out of their home. HMRC have found that almost 150,000 tax credit claims in 2008/9 were incorrect claims by ‘tax credit cheats’. Claimants must also notify HMRC of any other significant changes in family circumstances as well as other changes such as stopping or starting work and changes in income.
This move is part of a wider crackdown on benefit and tax credit fraud being undertaken by the coalition Government. Claimants are reminded to tell HMRC promptly of changes which may result in overpayment. A failure to notify HMRC can result in claimants having to pay back the money they have received. Claimants may also face a penalty and can be imprisoned in cases of deliberate fraud.
The Child Tax Credit can be claimed by those responsible for raising children, whether the claimant is working or not. The Working Tax Credit is available to qualifying individuals who work at least 16 hours a week whether or not they are responsible for raising children.