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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

Compliance investigations for tax credits

LITRG
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Low Incomes Tax Reform Group

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Total Posts: 107

Joined: 16 June 2010

Hi

After last year’s disaster with Concentrix, all compliance investigations during renewals this year are with HMRC staff. We have had two meetings with HMRC, along with other consultation group representatives, where they told us about many changes to the existing processes which hopefully should mean things are better this year.

HMRC have asked for feedback, both positive and negative, but we haven’t had any feedback at all this year as to whether there are any problems with compliance investigations including living together cases.

So, if anyone has encountered anything negative or if you have seen any changes that you can comment on, feel free to email me .(JavaScript must be enabled to view this email address) and I will feed it back to HMRC.

Victoria
LITRG

Peter Turville
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Welfare rights worker - Oxford Community Work Agency

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I have a current case. Nothing appears to have changed!.

Alleged L/T. Previously a couple claim. Separated. Single claim awarded May 16. Ex-partner didn’t notify change of address to his bank etc etc -  HMRC only evidence of alleaged L/T appears to be credit reference agency data.

TCC2033 issued 26/5/17. Reply sent inc. ref. to relevant sections of TCA and case law.

CTC stopped. TC607 issued 29/5/17. No decision notice issued. HMRC called me to ask what further evidence claimant could provided of alleged partners current address. - ‘claimant must show she is entitled to a single person claim, we have evidence (would not specify) there is another person living at her address etc etc.

MR & new claim made.

Client has 7 children inc. one with significant disabilities.

LITRG
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Low Incomes Tax Reform Group

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Peter - I’ll drop you an email with some questions - that certainly isn’t my understanding of how it should work with the TC607 and MR. Nor the reliance on the credit reference data.

Victoria

vn
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caseworker, Gwynedd CAB

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I came across two cases yesterday.  The first one the client was asked about details of self employment, two pages of questions and lots of documents to send.  She has been on Income support for 4 years. The contact phone number on the letter was incorrect. Eventually got the correct number and they confirmed that it was a mistake and the form should not have been sent.

I haven’t had an explanation of the second case yet.  Annual renewal completed over the phone, has had a joint claim for many years, no change of circumstances except 17 year old leaving full time education during the year which had been reported.  They received an income and expenditure form. As well as asking about income and savings, the form asked for expenditure and any debts they had. Other questions included value of any property they own, whether they own, lease, or have HP on a vehicle. There is also a form of authority for client to sign ‘to confirm information included in your claim’. It continues to ask details of their landlord and then ‘we give permission for HMRC to contact our landlord to confirm the documents supplied are correct’.  I contacted HMRC and asked why they needed this information. The person I spoke to could not give me an answer and suggested I phone again later to speak to the person who had sent the letter.  I was assured that the verbal authorisation given by the client during this phone call would be accepted for a second call later in the same day.  When I phoned back, no record of the initial 20 minute conversation and so no authorisation to speak to me.

Is there any reason HMRC would need this information to check a tax credit claim?

Stainsby
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Welfare rights adviser - Plumstead Community Law Centre

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I have just represented at Tribunal in a living together case.

It was started by Concentrix, but the MR (and Tribunal bundle)  was done by HMRC. 

I can see no change from the Concentrix days.

I have uploaded an anonomised copy of my submission to the Tribunal because it clearly shows the approach HMRC were taking.

Needless to say my client won her appeal easily

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LITRG
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Low Incomes Tax Reform Group

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vn - 23 June 2017 11:14 PM

I came across two cases yesterday.  The first one the client was asked about details of self employment, two pages of questions and lots of documents to send.  She has been on Income support for 4 years. The contact phone number on the letter was incorrect. Eventually got the correct number and they confirmed that it was a mistake and the form should not have been sent.

I haven’t had an explanation of the second case yet.  Annual renewal completed over the phone, has had a joint claim for many years, no change of circumstances except 17 year old leaving full time education during the year which had been reported.  They received an income and expenditure form. As well as asking about income and savings, the form asked for expenditure and any debts they had. Other questions included value of any property they own, whether they own, lease, or have HP on a vehicle. There is also a form of authority for client to sign ‘to confirm information included in your claim’. It continues to ask details of their landlord and then ‘we give permission for HMRC to contact our landlord to confirm the documents supplied are correct’.  I contacted HMRC and asked why they needed this information. The person I spoke to could not give me an answer and suggested I phone again later to speak to the person who had sent the letter.  I was assured that the verbal authorisation given by the client during this phone call would be accepted for a second call later in the same day.  When I phoned back, no record of the initial 20 minute conversation and so no authorisation to speak to me.

Is there any reason HMRC would need this information to check a tax credit claim?

I have sent you a message, apologies I didn’t see your reply.

I have not heard of any investigation like that before nor of a form of authority. I have known them look for unusual patterns of expenditure to see if the overall spending matches income (looking for undeclared income) but this particular letter isn’t anything I have seen before. Would be very helpful if you could email an anonymous copy to me.

Victoria

zoeycorker
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Welfare Rights Unit - Leeds City Council

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I’ve got a current case at the moment - all started by HMRC themselves no concentrix involvement - my client separated from her husband about 10/11 years ago and has lived in the current property as a sole tenant - however when she transferred certain utilities across, they got left in the husband’s name for ease (contents insurance, gas& electric)
HMRC have also discovered that the husband has continued to use her address for things like banking and car insurance as he has no fixed abode of his own.
Unfortunately in this case, they have had another child together in the time they have been separated - child is now 6 years old.
HMRC have taken the decision that she has been living together since 2007.
She is a single parent working part time with childcare costs for her young son - and all her entitlement has stopped. She can now not afford her rent as her eldest son is in work which means the non dep deduction takes her out of entitlement.
She is in a right mess.