HMRC internal manual

Tax Credits Technical Manual

TCTM10910 - Offence of fraud

The Tax Credits Act 2002, Section 35

(see TCTM12000)

This section covers fraud by claimant(s) and others abusing the tax credit system. It is not confined to claimant(s) or employer(s) and could be applied, for example to a childcare provider.

A person commits an offence if he or she is knowingly taking part in any fraudulent activity with the intent to obtain payments of a tax credit. The power is clearly intended to have a wide reach. If a person commits an offence:

  • they are liable on summary conviction, to imprisonment for a term not exceeding six months, or a fine not exceeding the statutory maximum, or both.
  • on conviction or indictment, they are liable to imprisonment for a term not exceeding seven years, or a fine, or both.