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Tax Credit & Benefit Fraud
Report, Penalties, Overpayments
Our experienced tax accountants act on your behalf in tax credit and benefit fraud cases. We review evidence, handle HMRC and DWP contacts, correct records, and negotiate outcomes fast. Personalised strategy, clear fees, and calm guidance end-to-end
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Universal Credit Migration
Universal Credit migration continues even where a past tax credit award is under fraud review. HMRC investigates discrepancies and can raise overpayments or penalties, while DWP decides your Universal Credit based on eligibility. If HMRC finds deliberate error, they may recover overpayments from Universal Credit. You should reply to letters, send evidence, and report changes promptly. Our advisors triage your case, challenge errors, agree affordable repayments, and represent you throughout. Keep evidence and dates.
Finalising tax credits after April 2025
After April 2025 tax credits end and finalisation matters. HMRC issues a final calculation, may offset overpayments, and can pursue penalties where facts were incorrect or not reported. Respond on time, update income and household changes, and keep evidence. Our team reviews figures, challenges errors, and sets affordable repayment plans. We liaise with HMRC to close.
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We are a team of specialist tax advisors who are delivering expert guidance on tax compliance, international tax, HMRC investigations, business structuring, capital gains, inheritance tax, corporation tax and self assessment services.
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Your Questions - Our Answers
We are here to help you with any questions you may have
What is tax credit and benefit fraud, and who deals with it?
Tax credit and benefit fraud involves claiming money you’re not entitled to by providing false information or hiding income. HMRC handles tax credit issues, while the Department for Work and Pensions manages benefits, including Universal Credit. Whether mistakes or intentional, the letters received are important—they establish deadlines and investigate tone.
To report suspected fraud, use HMRC’s online service or the National Benefit Fraud Hotline, which allows for anonymous reports. If contacted, read the letter carefully, keep the envelope, and note the date. Do not ignore interviews, even if under caution, as they may be recorded. Seeking advice beforehand is wise.
Penalties can range from civil recoveries to criminal prosecution for serious misconduct. Most cases are resolved civilly. Gather evidence, such as bank statements and payslips, as overpayments can be reclaimed even due to system errors.
Our Tax Advisors assess your situation, decode letters, establish facts, and respond on time. We can challenge inaccuracies, negotiate repayments for overpayments, prepare you for interviews, and organise evidence. Clear documentation and calm communication can minimise penalties. We also provide interpretation and summaries for non-English speakers.
How do I report suspected fraud or correct an honest mistake?
Reporting suspected fraud depends on the benefit. For tax credits, report directly to HMRC online or through their Fraud Hotline. For Universal Credit and most other benefits, contact the Department for Work and Pensions (DWP) via the National Benefit Fraud Hotline. If Housing Benefit is involved, the local council may pass information to the DWP.
Reports can be anonymous, but include as many details as possible, such as names, addresses, National Insurance numbers, and a clear description of the behaviour. Avoid gathering illegal information, and if you’re reporting a genuine mistake on your own claim, provide supporting evidence. HMRC and the DWP differentiate between genuine errors and fraud, which can affect outcomes.
If you’ve received a letter regarding your claim, check whether it requests evidence or invites an interview, and note any deadlines to avoid complications. Keep copies of everything.
Our Tax Consultants can help guide you through the reporting process, prepare neutral reports as a third party, or assist claimants with disclosures. If you need to correct your tax credit history, we can clarify how overpayments are calculated and help challenge mistakes, ensuring confidentiality if needed. We also offer support with language barriers on forms and online portals.
Tax credits ended in April 2025. What happens now?
Tax credits ended in April 2025. If you received Working Tax Credit or Child Tax Credit, HMRC will send an Annual Review letter with your payment details. Check the figures, confirm any changes, and keep the letter. You usually don’t need to respond if the info is correct, but retain records for future reference.
Many households are transitioning to Universal Credit. Respond to any Migration Notice from DWP by the deadline to avoid losing tax credits. Some may qualify for transitional protection. Keep copies of all documents submitted.
Investigations into fraud and overpayments can occur during or after this transition. If HMRC identifies any incorrect awards, they can recover overpayments, and the DWP may deduct the amount from your Universal Credit. Maintain records of childcare, income, and living arrangements from April 2025 onwards, and respond promptly to any correspondence.
Our Tax Advisors can review your Annual Review, assist with errors, and explain Universal Credit processes. We prioritise Migration Notices to ensure payment continuity, then address tax credit issues. In cases of overpayment, we challenge calculations and seek affordable repayment plans. If you’re concerned about compliance letters or interviews, we can help prepare you and focus discussions on evidence and fair outcomes.
What is an overpayment, and how do I challenge or repay it?
An overpayment occurs when you receive more tax credits than you’re entitled to, often due to changes in income, childcare costs, or delays in reporting information. HMRC has the legal right to recover these overpayments; however, there are routes available for addressing hardship and disputes.
Start by verifying HMRC’s calculations against your payslips, P60S, and other relevant documents. Confirm your actual income if HMRC used an estimate. If you disagree with the decision, follow the steps for mandatory reconsideration outlined in the letter and adhere to the deadlines. A well-documented timeline can aid in faster resolution.
If you acknowledge the debt but struggle with repayment, request a plan that suits your budget. While on Universal Credit, deductions may occur, but your financial situation is a key factor. Submit a statement of income and essential costs, and consider asking for a pause while you gather evidence.
Our Tax Consultants review your award history, rebuild the annual calculation, and draft a challenge letter with supporting evidence to facilitate a quicker resolution. If the overpayment is valid, we will negotiate reasonable repayment terms and address any proposed penalties by providing context. We aim to correct the figures, ease your stress, and find a fair way forward.
What penalties or prosecutions can I face, and how are they decided?
Penalties from HMRC depend on the behaviour and level of cooperation. Most cases are resolved using civil powers, allowing HMRC to obtain information, correct awards, and impose financial penalties, especially for deliberate or concealed actions. Serious cases may lead to a criminal investigation.
For tax credits, administrative penalties apply if changes are not reported on time or if incorrect information is given. If you receive a penalty notice, review it carefully and challenge it if there are inaccuracies or reasonable excuses. Keep evidence and copies. If invited for an interview under caution, take it seriously and seek advice, as it may be recorded.
Cooperation can reduce penalties. Respond promptly, provide clear documents, and avoid speculation. If a mistake was due to confusion, explain how you will prevent it from happening again. If you are facing repayment and penalties, ask HMRC to consider your affordability.
Our Tax Advisors can help by triaging your case, advising on options, and directly communicating with HMRC. We prepare legal representations, propose civil settlements with accurate figures, and offer legal support in the event that prosecution risks arise. Our goal is to correct the award, minimise penalties, and ensure you can move forward confidently with improved reporting practices.
What happens at an interview under caution, and how should I prepare?
An interview under caution is a formal meeting held when fraud is suspected, where your statements may be used as evidence. The interview is recorded, and you’ll receive a letter with details about the time, place, and issues being investigated—don’t ignore it. Please bring photo ID, arrive early, and feel free to request breaks. You’re entitled to seek advice and have a representative with you.
Before the interview, review your file, prepare a timeline, and gather supporting documents, such as payslips and bank statements. If you’re unsure about an answer, it’s better to say so than to guess. If English is challenging, request an interpreter. Stay polite and concise, as the interviewer will likely ask about changes in income, work, or household that may have caused data mismatches.
After the interview, you may need to provide additional documents or receive a decision. You’ll have a chance to challenge inaccuracies. Keep your notes on questions asked and who attended. If a question was unclear, note how you understood it.
Our Tax Consultants can prepare you for the interview and attend with you, ensuring your evidence is presented clearly. We focus on highlighting errors rather than deliberate behaviour, aiming for a fair process and accurate outcomes. We also help set reminders for future reporting to prevent mistakes from escalating.
What evidence should I gather, and how do I respond to letters?
When you receive a compliance letter, immediately note the deadline and required documents, such as bank statements, payslips, or proof of residency. Create a labelled folder for each item and keep a copy of the envelope. For tax credits, report any changes within one month to avoid penalties; HMRC may still check past years for repayments. If you provided an estimated income, submit the actual figure by the specified date. For Universal Credit migration, adhere to any deadlines in the notice.
Include a concise cover note detailing what you are sending, and indicate any missing items with a timeline for obtaining them. Do not send originals unless specifically requested, and use recorded delivery or a secure portal for all submissions. Maintain a factual tone and seek clarification if needed. Always meet deadlines, even if it means sending partial documents on time.
Our Tax Advisors create evidence packs that directly address the questions, verify numbers against official letters and bank data, and provide clear timelines. If discrepancies arise, we can draft a challenge and request reconsideration, as well as request pauses or reduced deductions for hardship cases. Staying organised and replying promptly often leads to quicker resolutions and less stress overall.
How does Universal Credit migration affect fraud checks or old tax credit debt?
Universal Credit migration continues even if your tax credit award is under review. The DWP assesses your eligibility based on your current situation, while HMRC can finalise tax credit awards up to April 2025 and recover any overpayments. In some cases, the DWP may deduct from your Universal Credit to repay HMRC, subject to limits.
If you receive a Migration Notice, claim Universal Credit by the deadline to avoid losing tax credits and income gaps. Some individuals may qualify for transitional protection if they claim on time. For disputes, use the benefits appeal process for Universal Credit and HMRC’s reconsideration for tax credits, as they follow different rules.
During migration, keep documents organised, such as wage slips and bank statements, and respond quickly. Prioritise your Universal Credit claim if there are overlapping dates. If DWP deductions are unaffordable, request a lower rate that aligns with your budget.
Our Tax Consultants manage both processes efficiently, preparing your Universal Credit claim and reconstructing your tax credit history. We address overpayments and negotiate sustainable repayment plans, ensuring clear communication between departments to protect your income during the resolution process.
Can I get an affordable repayment plan or a deduction reduction?
If you owe money after a tax credit review, don’t panic. You can repay over time, through a direct debit plan with HMRC, based on what you can afford. If you receive Universal Credit, amounts can be deducted from your award, and you can request a lower rate if necessary.
Start by creating a realistic budget that includes essential expenses, such as rent, council tax, and food. Propose a sustainable monthly repayment amount. If your proposal is refused, speak with a supervisor and explain its impact on your essentials. If deductions are made from Universal Credit, provide evidence to support a reduced rate.
If some of the overpayment is disputed, pursue both the dispute and the payment plan simultaneously. You can request that HMRC pause collections while reviewing evidence, although this is not automatic. Maintain civil, written communication, and if you miss a payment, contact the department promptly to reset the plan.
Our Tax Advisors can prepare your budget and handle negotiations for a suitable payment plan, ensuring payments are coordinated across all creditors. We also check that deductions comply with legal limits and adjust plans if your income changes, helping you stay on track while managing your day-to-day living. Practical agreements help prevent costly enforcement actions.
How do your Tax Advisors manage the whole case from letter to closure?
Our role is to reduce stress, ensure accurate calculations, and maintain income. Our Tax Advisors review your letters, reconstruct awards, verify figures, and draft clear responses for quick reconciliation by the officer.
If you’re facing an interview under caution, our Tax Consultants prepare you for likely questions and attend when needed. We ensure your documents are clear and concise. Should a criminal matter arise, we will coordinate legal advice and adjust our communications accordingly. For overpayments, we negotiate manageable repayments or pauses in cases of hardship.
For Universal Credit migration, we guide you through the process, prepare your claim, and confirm the evidence needed. We also finalise your previous tax credit year, challenge errors, and defend your position. If penalties arise, we provide grounds for reduction in accordance with our policy and guidance.
Everything is managed through our secure portal, where you can upload documents and track progress. We keep you updated with concise information and a clear plan, while communicating with HMRC or the DWP on your behalf.
To get started, call us for a quick review. We’ll provide a fixed fee and timeline, allowing you to focus on life while we manage your case efficiently and effectively. Clear communication and accurate evidence help us win most cases without unnecessary drama.