Clampdown on tax credit fraud

People who receive tax credits have been warned they could face fraud charges if they fail to tell HM Revenue & Customs immediately about changes to their relationships.
By The Newsroom
Published 22nd Oct 2010, 21:01 BST
Updated 22nd Oct 2010, 21:01 BST

HMRC is writing to tax credit recipients reminding them that

deliberately failing to pass on information about changes to their personal circumstances, including if a partner has moved in or out, could constitute fraud and lead to them being prosecuted.

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The move is part of a wider Government crackdown on error and fraud in benefits and tax credits.

The amount of money people receive through tax credits changes

depending on their personal circumstances.

As a result, if people fail to inform HMRC about changes promptly, it could result in them receiving too much money.

HMRC said 150,000 tax credit claims in 2008/09, around 2.5 per cent of the total, were incorrectly paid as single claims.

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David Gauke, the Exchequer Secretary to the Treasury, said: "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."