Ctc

neneromanova

Why do we have to bother renewing each year? Surely the CTC office can just look at our salaries by what we pay in tax or look at self employed accounts submitted? I thought they were all one big family or am I missing something?

neneromanova

yeah I didn't think of that. But i'm still wondering how people earn say £60k but say on TC they earn only £20k and get away with it for years and never get checked up on?

NeilCr

neneromanova wrote: »

yeah I didn't think of that. But i'm still wondering how people earn say £60k but say on TC they earn only £20k and get away with it for years and never get checked up on?

How do you know this happens?

Cheeky_Monkey

neneromanova wrote: »

Why do we have to bother renewing each year? Surely the CTC office can just look at our salaries by what we pay in tax or look at self employed accounts submitted? I thought they were all one big family or am I missing something?

If you really can't be bothered to fill in a form once a year to get State benefits, you are at liberty to close your claim anytime you like :beer:

neneromanova

What I mean is you see people on the news saying they claimed for 100k fraudulently and have now been jailed, why couldnt the tax office see they were earning more than they said and let them claim nearly 100k?

Ames

neneromanova wrote: »

What I mean is you see people on the news saying they claimed for 100k fraudulently and have now been jailed, why couldnt the tax office see they were earning more than they said and let them claim nearly 100k?

I'd' imagine that they're committing fraud in ways that are harder to catch - claiming as a single parent when the higher earner lives with them, using fake accounts to claim as self employed with a low income, for instance.

sheramber

neneromanova wrote: »

What I mean is you see people on the news saying they claimed for 100k fraudulently and have now been jailed, why couldnt the tax office see they were earning more than they said and let them claim nearly 100k?

they did see they were making false claims and that person is now in jail. they will also have to pay money back.

Darksparkle

The income used to calculate tax credits isn’t always the same as what you’d declare on self assessment or an employer reports through RTI eg SMP deductions allowed for tax credits but not for income tax.

If the employment income is being correctly reported through RTI then tax credits will be aware of it. However if employment income is not being reported corrrctly by the employer or if someone who is self employed is under declaring their income on self assessment then HMRC would not be aware of that until they complete a compliance check. They aren’t psychic.

I’ve seen few cases where someone underdeclared their income for tax credits, normally it’s for fraudulently claiming as a single person, incorrectly claiming disability elements, inflated childcare etc. If it’s to do with income it’s usually cash in hand so far more going on than claiming benefits.