|
Merseyside
self employed tax credit cheats targeted
HM Revenue & Customs (HMRC) have
launched a campaign to target and crack down on suspected fraudulent
tax credit claims by the self employed. Letters have started to land
on the doorsteps of 12,000 self employed people across the UK who
are claiming tax credits. HMRC teams have been examining tax credit
awards being paid to the self employed and are writing to any whose
claims may not be genuine or accurate. They are asked to contact the
department and supply evidence to support their claims. Failure to
tell HMRC promptly of any changes in income can result in
overpayment, which means that claimants have to pay back the money.
They could also face a penalty and, in the case of deliberate fraud,
criminal prosecution and imprisonment. As part of a wider government
crackdown, HMRC and the Department for Work and Pensions (DWP) have
published a strategy designed to tackle error and fraud in benefits
and credits.
Exchequer Secretary to the Treasury, David Gauke, said:- "HMRC
is determined to take a tough approach to targeting possible fraud
among tax credit claimants. Last year, the Government launched
radical proposals to reduce the billions lost to tax credit error
and fraud every year. These losses are unaffordable and
unacceptable."
HMRC will now use credit reference agencies and data-matching to
spot patterns of fraud. The department is also employing additional
investigators and are examining each claim in high fraud areas. A
breakdown of Merseyside's self employed tax credit claimants:-
Knowsley = 1,200
Liverpool = 3,300
Sefton = 2,300
St Helens = 1,200
Wirral = 2,500
When added together, the Merseyside total of self employed tax
credit claimants comes to a staggering 10,600 claimants. Yet, how
many now are truly fraudulent claimants?
Sadly though, the system HMRC has been using to monitor self
employed tax credit claimants is itself having major errors,
with data being wrongly logged. Faced by the the worry of getting a
claim wrong, it has been suggested that, over 2010, many were
deterred from claiming, this according to many local business
groups. It was only in
December 2010 reported
that Liverpool City Council had launched local campaigns across the
city to raise awareness of the benefits, to which people might be
entitled and to ensure they were claimed.
It is not however, just errors with the self employed that are
proving problematic. In September 2010, national media clamed that
millions of people were
told by HMRC that they had been
underpaying tax! It was called for that unpaid tax
should be written-off. After this came to light, the HMRC admitted
it had made mistakes in collecting tax through Pay As You Earn
(PAYE) system, from nearly 6 million UK taxpayers. Oddly also, other
errors of over payment came to light shortly after. That was not the
first time, as in 2008 we reported financial that
advisers, James Cargill
Ltd., claimed that "that many
were still owed Children's Tax Credit from the tax year 2002/03."
The thing that worries many is the fact that it is down to you, the
individual, and not the tax office to check for errors! If they find
any errors or think they have found any; it is down to you to prove
they are wrong. Under the rules as they stand HMRC will consider
your claim but, after you have supplied further information, they
may need to verify details with you, before giving their decision.
There is no legal right of appeal, yet you can ask for another
officer to review the decision made. No wonder why people worry
about claiming. Being self employed in this current economic
environment is hard, and if these figures are proved correct, all
this makes the genuinely qualifying self employed to feel very
daunted about making any claim. Also, of course, it is equally it is
worrying that many get cash they are not entitled to so easily. So,
how could this system be rebuilt to regain confidence of the genuine
claimant and at the same time eliminate fraud?
Let us know your ideas. Also, if you have you had any problems with
NI and/or tax credits, again please do let us know. Your information
can be kept fully confidential. Email our newsroom to:-
news24@southportreporter.com, with any information and
also if you have any other views on this topic. If you want us to
refer your ideas or information on to a local MP, or because you
need the MP's help. Please clearly indicate this on the email
you send to us.
To find out if you can make a claim, why not visit this free advice
guide page on:-
adviceguide.org.uk.
For information on the Government’s Fraud and Error strategy for
benefits and tax credits see:-
dwp.gov.uk.
For tax credits statistics see the
website.
|
This
week's news in
pictures |
 |
 |
 |
|
|
|
