This report presents the latest findings from the 2016 to 2017 Error and Fraud Analytical Programme, which measures error and fraud in the tax credits system.
The commercial with a view to a profit condition for tax credits which applies to self-employed claimants has been included in the 2016-17 analysis.
For 2016 to 2017, the central estimate of the rate of error and fraud favouring the customer is around 4.9%. This equates to around £1.32 billion paid out incorrectly through error and fraud. Without the commercial with a view to a profit condition the error and fraud rate would be 4.7%, which equates to £1.27 billion paid out in correctly through error and fraud.