Tax & Accounting News
HMRC signs deals with Experian to catch tax cheats
13/12/2011
HM Revenue and Customs (HMRC) has agreed a deal with credit reference agency Experian to help it spot tax credit and benefit cheats.
Under the 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.
