Tax credit claims to be investigated

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A CAMPAIGN to target suspected fraudulent tax credit claims from the self-employed is under way from the HMRC.

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.