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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
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Penalties and interest: incorrect claims - examples of negligent or fraudulent behaviour - enquiries or examinations

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Example 1

Sharon is entitled to WTC because she is 25 years old, single and works over 30 hours. However, Sharon also claimed for a child that did not exist in order to receive CTC. She said she did it because she did not understand the tax credits system. This is Fraudulent Behaviour, because Sharon claimed for a fictitious child.

Sharon’s excuse is irrelevant because her lack of knowledge of the tax credits system did not influence her decision to knowingly supply wrong information. This was Fraudulent Behaviour.

Example 2

Kimberley D showed child care costs of £75 per week. An enquiry established that she did not pay for childcare. Kimberley D says she had made the claim because her friend told her that she was claiming £75 per week for childcare. This amounts to a Fraudulent Behaviour for claiming for fictitious child care costs.

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Example 3

Rhys was contracted to work 20 hours a week. On his claim for WTC he said he worked 36 hours a week. When asked why, Rhys said that he realised that as a single person he wasn’t entitled to tax credits unless he worked 30 hours a week and so he made up the number of hours in order to qualify for entitlement. This was Fraudulent Behaviour .

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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Example 4

Nicola submitted a claim as a single person. The enquiry established she was living with her husband. Nicola says she did not include her husband because he does not help her with the costs of bringing up her children from a previous marriage. This amounts to Negligent Behaviour . It is not credible that a person who is married (and not separated) would think they are single.