HMRC to crack down on self-employed tax credit cheats

Date: 18th February 2011

HM Revenue & Customs (HMRC) has announced the launch of a new campaign to crack down on people fraudulently claiming tax credits.

The focus of the initiative will be self-employed individuals that are suspected of defrauding the system.

HMRC has confirmed that letters have been posted to the 12,000 self-employed people that are currently claiming tax credits warning them of their intentions.

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."

After examining tax credit awards HMRC is writing to people whose claims it believes may not be genuine or accurate.

The department has confirmed that it will use credit reference agencies and data-matching to "spot patterns of fraud".

Posted by Emily Smith