HM Revenue & Customs (HMRC) is urging parents who claim tax credits to tell HMRC about changes to childcare that include:
· Average childcare costs end or go down by £10 a week or more.
· Their childcare provider stops being approved or registered.
· They start getting childcare vouchers from an employer.
· They start getting early learning or nursery education support.
Tax credits claimants are being reminded that they must let HMRC know within one month of their childcare costs falling or ending. Deliberately failing to let HMRC know when renewing a tax credits claim that your circumstances have changed could be seen as fraud and result in prosecution.
This campaign follows October’s push to remind tax credit claimants that they must let HMRC know immediately if a partner moves in or out of the household and that deliberately failing to do so could constitute criminal fraud and result in prosecution.
In November HMRC reminded self-employed tax credit claimants to report their final income for 2009/10 as soon as possible, to ensure payment is correct.
Exchequer Secretary to the Treasury David Gauke said: “There is too much error and fraud in our benefits and tax credit systems. These losses
are unfair, unaffordable and unacceptable.
“In October the government therefore launched radical new proposals to reduce the billions lost every year. We will now use credit reference agencies and data matching to spot patterns of fraud. We are also employing more investigators and will investigate each claim in high-fraud areas. We have to make every penny count – and that includes going after the cheats at every level.â€
Get help with tax credits
For information on the government’s new Fraud and Error strategy for benefits and tax credits see www.dwp.gov.uk/newsroom/press-releases/2010/oct-2010/dwp138-10-181010.shtml.
For general tax credits information: www.hmrc.gov.uk/taxcredits/index.htm.
Help and advice is also available from the tax credits helpline on 0845 300 3900.
