Menu
22/05/2013
Tax Credit Fraud Target Off By £5bn
HM Revenue and Customs (HMRC) will miss its 2015 target of cutting tax credit fraud by £5bn, a report by the Public Accounts Committee has said.
HMRC was challenged by the government in 2010 to cut tax credit fraud by £8bn by 2015, but it is now predicted to only reduce it by £3bn.
Tax credits were designed to financially support parents returning to work. Age, income, hours worked, number and age of children, childcare costs and disabilities are all used to decide entitlement.
Claimants are then expected to inform HMRC of any changes in their circumstances, so the amount allocated can be adjusted.
However, the latest figures reveal that:
• One in five awards featured an error or fraud which meant the claimants were overpaid
• A total of £1.7bn of these overpayments was written off because claimants were never likely to pay it back
• Some £2.3bn was lost to fraud and error in 2010-11, which was £850m more than HMRC expected
• A target to reduce the proportion of fraud in relation to the total amount of money spent on tax credits to 5% in 2010-11 was missed. It stood at 8.1%
• The 2015 target, set in the 2010 Spending Review, will now be missed by £5bn, according to HMRC estimates
(MH/CD)
HMRC was challenged by the government in 2010 to cut tax credit fraud by £8bn by 2015, but it is now predicted to only reduce it by £3bn.
Tax credits were designed to financially support parents returning to work. Age, income, hours worked, number and age of children, childcare costs and disabilities are all used to decide entitlement.
Claimants are then expected to inform HMRC of any changes in their circumstances, so the amount allocated can be adjusted.
However, the latest figures reveal that:
• One in five awards featured an error or fraud which meant the claimants were overpaid
• A total of £1.7bn of these overpayments was written off because claimants were never likely to pay it back
• Some £2.3bn was lost to fraud and error in 2010-11, which was £850m more than HMRC expected
• A target to reduce the proportion of fraud in relation to the total amount of money spent on tax credits to 5% in 2010-11 was missed. It stood at 8.1%
• The 2015 target, set in the 2010 Spending Review, will now be missed by £5bn, according to HMRC estimates
(MH/CD)
Related UK National News Stories
Click here for the latest headlines.
18 February 2011
Self-Employed Tax Credit Cheats Targeted
HM Revenue & Customs (HMRC) has launched a campaign to target and crack down on suspected fraudulent tax credit claims from the self-employed. Letters have started to land on the doorsteps of 12,000 self-employed people who are claiming tax credits.
Self-Employed Tax Credit Cheats Targeted
HM Revenue & Customs (HMRC) has launched a campaign to target and crack down on suspected fraudulent tax credit claims from the self-employed. Letters have started to land on the doorsteps of 12,000 self-employed people who are claiming tax credits.
07 March 2012
11 Year Low For Card Fraud
Money lost due to credit and debit card fraud has reached an 11-year low, falling to £341m last year, a drop of 7%. The drop has been attributed to a 41% fall in fraudsters impersonating people to obtain or use credit cards and a 24% drop in fraud committed by cloned credit cards.
11 Year Low For Card Fraud
Money lost due to credit and debit card fraud has reached an 11-year low, falling to £341m last year, a drop of 7%. The drop has been attributed to a 41% fall in fraudsters impersonating people to obtain or use credit cards and a 24% drop in fraud committed by cloned credit cards.
03 June 2013
'Most Wanted' Tax Fraudster Jailed
A computer company director described by HM Revenue & Customs as "a tax fraudster in a Most Wanted list" after he absconded to the USA has been jailed. 53-year-old Jonathan Nugent was charged with a £5.5m VAT fraud in 1998. After being released on bail, he absconded to the USA in 2000 before his trial began.
'Most Wanted' Tax Fraudster Jailed
A computer company director described by HM Revenue & Customs as "a tax fraudster in a Most Wanted list" after he absconded to the USA has been jailed. 53-year-old Jonathan Nugent was charged with a £5.5m VAT fraud in 1998. After being released on bail, he absconded to the USA in 2000 before his trial began.
16 August 2012
HMRC Publish List Of Most-Wanted Tax Fugitives
A list of the 20 most-wanted tax dodgers, who fled the UK while owing the Treasury millions, has been published in an appeal for help to track them down. Her Majesty’s Revenue and Customs (HMRC) have published the names and pictures of the fugitives for the first time.
HMRC Publish List Of Most-Wanted Tax Fugitives
A list of the 20 most-wanted tax dodgers, who fled the UK while owing the Treasury millions, has been published in an appeal for help to track them down. Her Majesty’s Revenue and Customs (HMRC) have published the names and pictures of the fugitives for the first time.
05 June 2012
Five Family Members Sentenced In £600,000 Fraud
Five members of the same family have been sentenced after a lengthy investigation into fraud. The Coffey family’s bank accounts showed vast turnovers of money. They invested in multiple properties paid for by cash or bankers drafts.
Five Family Members Sentenced In £600,000 Fraud
Five members of the same family have been sentenced after a lengthy investigation into fraud. The Coffey family’s bank accounts showed vast turnovers of money. They invested in multiple properties paid for by cash or bankers drafts.
-
Northern Ireland WeatherToday:Gale, coastal severe gale, northwest winds ease from late afternoon. Scattered showers will fall as snow over the hills at first, becoming isolated from mid-afternoon. Maximum temperature 7 °C.Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Cloud will spread east towards morning. Minimum temperature 2 °C.
