In the UK, over 3 million households are in receipt of tax credits. The figure fluctuates, and at times as many as 3.3 million people have been in receipt of these extra government funds.
This benefit is one that many parents rely upon heavily. Without their tax credits most could not afford the basics.
The tax credit system is complex and difficult. Most people know very little about the system.
For example, few people realise that if you have a change of circumstances you have to notify the authorities. Failure to do so could result in overpayment. If that happens, and you do not realise and continue to take the money, you could face criminal charges.
Take Action Sooner Rather than Later
If you know that you have been over claiming tax credit you need to sort things out. The HMRC administer the system, and they catch up with most people.It is far better if you take steps to correct the problem rather than wait for the knock at the door.
However, before taking action take the time to talk to a legal advisor who has experience of tax credit fraud. They will advise you of the safest way to correct the problem.
If the HMRC have already contacted you, seek legal advice straight away. The sooner you do so the more options you will have for resolution.
Do not ignore the HMRC
Unfortunately, some people ignore the letter from the HMRC. They assume that over claiming a couple thousand pounds is no big deal.
This is a big mistake. If HMRC have written to you, they have caught you, and they will follow through. The sooner you seek advice the better things will turn out.