12 January 2012

HMRC Signs Deals with Experian to Catch Tax Cheats

 

HM Revenue and Customs (HMRC) has agreed a deal with credit reference agency Experian to help it spot tax credit and benefit cheats.

Under a 12-month agreement, Experian will use data-matching techniques to check £770 million of benefit and tax credit overpayments which are currently lost due to undeclared partners or income.

This will cover all Department for Work and Pensions (DWP) means-tested benefits, including Jobseekers Allowance, Employment and Support Allowance, Income Support, Pension Credit and Housing Benefit.

According to the Government, a recent pilot of the scheme managed to protect more than £16 million of anticipated losses in tax credits. The first cases identified by Experian have already been passed over to fraud investigators.

The new deal is expected to save HMRC £700 million and the DWP £100 million.

For further advice please contact Linda Warner or Liz Beadsley.