Ok so this is going to take forever to explain.
I am a previous employee of concentrix for HMRC. Worked there from it basically started I'm going to explain exactly what happens.
HMRC has contracted concentrix to carry out compliance checks on three specific aspects of tax credits.
- Working hours
- Childcare
- Undeclared partner
The reason for this is because these are the highest categories which generate the most fraudulent activity. I'm not saying any of you are claiming fraudulently however there are people out there who are.
HMRC are by law entitled to do at least 2 compliance checks a year if they deem necessary. It states that in the tax credit forms.
This is why concentrix has been brought in. Concentrix deal with previous year/current year claims and renewals. So for now it's the tax year 2015-2016 and your renewal for 2016/2017 they can't renew your tax credits without your annual declaration and clearing the previous year risk thats why they ask for evidence for 2015/2016 from April to April.
Everything concentrix does is regulated by HMRC to a max. Concentrix does nothing without HMRCS say so, but they do have the power to stop your claim.
So I'll go through each individual risk and hopefully make things easier for you since current employees basically can not say this shit on the phone. It's completely understaffed over 300 people for over one hundred thousand cases and the advisors you speak too are completely underpaid, they do 40+ hours a week and not one bit of gratitude from concentrix or HMRC and they are barely a day older than 21 for the most part.
Case workers are targeted at basically 25+ closed cases a day.
So think about the many letters you receive.
There are 5 steps.
Step one:
You get your opening letter stating that an investigation has been raised to ensure you're receiving the right amount of tax credits.
Step two has multiple parts:
- You send the evidence.
- Caseworker assesses the evidence
- Sometimes there's not enough evidence to make a decision in that scenario we go to
- You receive a more information letter for the majority of the evidence you've sent in already and you're frustrated as hell because you thought you sent everything in. Well no.
You haven't. They want everything they've asked for on the letters -
For Undeclared partner:
These cases are flagged because there has been someone registered to the address, they never told us where they got there information from but I'm guessing it's credit reference agencies.
Because if someone applies for a loan or a mortgage or any sort of credit, job even visas, they almost always have to provide a full address history, as soon as they put your address in, it flags up hence the compliance check.
If you live with your parents they're obviously going to be registered at the address they own the damn place or it could be siblings popping up.
If you have ANY kind of joint account with your ex, even if they're closed, credit reference agencies hold that information for years so it will still pop up.
You are not being singled out they are compliance checks. If you notice in the letter instead of over reacting it states "may be another adult living with you"
It doesn't mention partner.
It used to, but that was a major screw up on there end.
The evidence:
all bank statements from April to April. FOR ALL BANK ACCOUNTS. If you're worried about payments from people explain it in a letter, as long as you don't have transactions like "I love you hunny" or "for my husband xxxxx" or "wifey" they won't call to question the payments. Yes it's a pain in the ass but if they can see that you're financially supporting yourself then you're grand.
Tenancy agreement, but really an up to date headed letter from your landlord stating who lives in your house works just as well and has more weight than a tenancy agreement.
The reason they ask for legal separation documents is because if you are married, and separate for a short time and resume the relationship - HMRC still considered you a married couple because it wasn't permanent, so they will take the whole lot off you and make you pay it back. If you're married and you are likely to stay separated, explain to them in a letter that divorce is not an option due to financial reasons and put the date on it which your husband or wife left. If you are divorced, don't send the originals, photocopy them, have them certified by a bank with a stamp and they'll accept it.
The only thing they look for in a council tax bill is single discount
And they want utility bills to prove they're in your name.
If your ex pays them and they're in his name because it's a maintenance agreement EXPLAIN IT IN A LETTER.
For undeclared partner if you send all that crap in and before the time is up, it's dealt with more quickly.
The day you receive the letter, instead of phoning concentrix and waiting on hold for over an hour - call your bank order the statements or print them off from your online banking what's a few quid to order them rather than risk having thousands per year took away?
Call your landlord as for the letter, if you can't get utility bills because you're on prepaid meter on online statements - print them.
They give you 30 days sometimes more to get the evidence.
For working hours:
Working hours mainly flags for compliance checks because every month when your payslips are issued or your job is doing payroll by law they have to update this to HMRC, so the income they declare to them for you each week/fortnight/four weekly/monthly may be less than minimum wage which triggers the checks.
You may have been off sick or on maternity or even term time workers.
Just bare in mind, if you're long term sick - HMRC regulations states you're not entitled to WTC after 28 weeks.
For those that take a years maternity leave, HMRC regulation says you're only entitled to 39 weeks, so after that if you haven't returned to work they'll end your WTC.
For the evidence:
Forget the hundreds of payslips you've probably thrown out along the way over a year, I never kept mine so it's understandable.
Quickest way to comply with working hours and have it out of the way -
Get a letter headed letter from your employer stating the date you started work, how many hours per week you work.
16 hours if a single parent or disabled and over 60
24 hours if you're in a joint claim
30 hours if you have no children
Bare in mind - if you're employer says you work less than those hours they'll take WTC away.
For childcare:
This normally flags because the average amount for childcare for whatever many children you have may be less than what you have declared or because your childcare provider is not a registered with the likes of ofsted, family support NI etc etc
And your child has reached the age where they get their 15 free hours of childcare
If it's the latter then you need to slap your childcare provider silly because they have done you out of your tax credits.
If you use child care vouchers you need to deduct these costs now, you're not entitled to those.
And you need to work out how much you actually pay AFTER the vouchers and the 15 hours free if you claim it.
If you're in a joint claim you're only entitled to child care if you BOTH work 16 hours.
The evidence:
Again just like the working hours -
Ask your child care provider or providers to write a headed letter stating when your child started, how much you pay per week, if needs be get them to deduct the child care vouchers and free hours and include that on the letter too along with their registration number.
If it is all done like that, 98% of the time you won't get a more information letter unless you've got a brainless tool working your case.
Moving on to step 3:
The suspension letter:
This is sent for 1 or all of 3 reasons.
- You have not complied with the opening letter
- You have not complied with the more information letter (sometimes the more information letter is sent out even if you don't comply with the opening letter)
- You have confirmed the risk in your evidence and they have suspended payments to prevent you from being overpaid.
Like I said before, if you send what I said above, you most likely won't get a more information letter or a suspension letter.
Step 4:
This only applies between April 5th and 31st July
They'll send you a letter or call you asking for your annual declaration in full or why what you have declared on the annual declaration doesn't match what your employer said you earned for the year.
If you don't comply with this by 31st July they will finalise your previous year award on the details they have from HMRC and your current year award with be terminated.
Meaning all the provisional payments you have got from Apr - July you will have to pay back all of it, because from the start of the year, you're not actually entitled to the money until you finalise your claim with your annual declaration that's why HMRC spill so much money on advertising to remind you to renew.
And lastly step 5:
The decision letter.
This can go in your favor or against you but that's up to you.
You'll receive a non amend letter based on the evidence you've sent if you have sent in enough to clear the previous year risk for any of the above.
Or you'll receive the amendment letter,
Meaning in undeclared partner:
You have not explained it properly and they have found enough ground to amend the case on.
Or you admit you partner recently moved in or has always lived with you.
For working hours:
You've never been entitled to WTC because you haven't worked the required hours
For childcare:
Your payments you have declared are a lot more than you should be getting.
I hope this helps you understand why you're receiving these, and you stop freaking out.
You should only be freaking out if you have something to hide, if you don't. Then comply with the letters.
My advice, if you're going to call up, do it after 7pm. JC