Why don't Tax Credits ever ask for proof of earnings

Zaksmummy

I've often wondered why TCO never ask for P60's as proof of earnings. When my son applied for a student loan they requested my partners P60 3 times in less than a year!

As we pay into a private pension each month, there is a difference between P60 amount and the amount I tell TCO we have earned and have never had this questioned. (Can't remember if this figure is asked for on renewal form)

Which leads me to wonder how many claimants write down false earnings and get away with it. :eek:

Surely being under the HMRC system they could check figures from P60, but do they?

I know this is more of a discussion than a problem but thought this would be best place to put my question.

cupkate

They definitely can check. This is why so many people have tax credit overpayments at the end of the tax year-this is when their actual earnings are reconciled with their projected earnings. Maybe they asked for your partner's P60 3 times because they saw the discrepancy between the amount on the P60 and the amount you told them you earned!

nad1611

All I can add is when applying to support my girls for their Student Loans, I was told they didn't need our Financial Info like they did last year which we did in the form of the Tax Credits Allowance Final Form. This year they said they could check with HMRC. Mind you if Student Loans Company are as per normal theyall say something different.
In any event we presume they will check through HMRC. So possibly with TCO they have done this too??

Perfumes

You enter your N.I. number on your form so that's how they get your wages details

They also ask for your Employers Tax Reference Number, so they have plenty information to check your earnings through these two avenues

real1314

They probably do a reconcilaition against tax records, after a year, or so.
Being HMRC they probably also think that recovery of an overpayment is not a big issue - you just take it from wages if need be.
They never seemed to grasp that a means tested benefit isn't really something you can readily allow to be hugely overpaid on the proviso that you can withdraw it next year. It's not really quite the same as under/overpaid tax, where a sustenance income is present more often than not.

Zaksmummy

cupkate wrote: »

They definitely can check. This is why so many people have tax credit overpayments at the end of the tax year-this is when their actual earnings are reconciled with their projected earnings. Maybe they asked for your partner's P60 3 times because they saw the discrepancy between the amount on the P60 and the amount you told them you earned!

If you are an honest person then you will give them your correct earnings from P60, which may or may not be different to the figure you gave at renewal stage, hence overpayments of tax credit. As for asking for p60 3 times, this was asked for by Student Loans Company, and not tax credits and the reason they asked for it so many times was that my DS accidently killed me off :eek: whilst applying online and couldn't rectify it online, hence having to start claim from beginning.

Zaksmummy

Perfumes wrote: »

You enter your N.I. number on your form so that's how they get your wages details

They also ask for your Employers Tax Reference Number, so they have plenty information to check your earnings through these two avenues

So how does it work with people who are self employed?

Hammyman

A self employed person has a UTR number tied to their NI number. They can check the tax returns for the previous financial year on February 1st. Pretty much the same as PAYE however delayed by 9 months.