Tag: HMRC

Self Assessment deadline looms: 65% surge in taxpayers paying via app

  • Almost 340,000 Self Assessment filers have already paid their tax bill using the HM Revenue and Customs (HMRC) app.
  •  It is quick and easy to pay via the HMRC app and set up payment reminders.
  • Taxpayers need to file their return and pay tax they owe by 31 January.

The number of people using the HMRC app to pay their Self Assessment tax bill has increased by nearly 65%.

Almost 340,000 people have used it to pay since 6 April 2025, an increase of 132,788 people compared to the same period last year.

Self Assessment customers need to file their tax return online for the 2024 to 2025 tax year and pay any tax owed by 31 January 2026. HMRC is encouraging those yet to start theirs, to go to GOV.UK and do it now. Anyone who misses the deadline could be subject to an automatic £100 penalty.

Filing tax returns ahead of the deadline means knowing how much tax to pay sooner. It is quick and easy to pay via the HMRC app and set up payment reminders to make sure the deadline isn’t missed.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “The Self Assessment deadline is less than one month away, and thousands of people have already paid their tax bill via the HMRC app. It is quick and easy to do, and you can also see your payment history.

“Search ‘download the HMRC app’ on GOV.UK to access the app and make your Self Assessment payment.” 

People unable to pay any tax owed in full may be able to set up a Time To Pay arrangement, if they meet the eligibility criteria and they owe less than £30,000.

Alternative options include paying directly through a bank account, direct debit or paying online via GOV.UK. A full list of payment options can be found on GOV.UK.

HMRC expects more than 12 million tax returns to be filed by the deadline. Those who miss the deadline will be issued with a penalty:

  • an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time 
  • after three months, additional daily penalties of £10 per day, up to a maximum of £900 
  • after six months, a further penalty of 5% of the tax due or £300, whichever is greater 
  • after 12 months, another 5% or £300 charge, whichever is greater 

There are also additional penalties for paying late of 5% of the tax unpaid at 30 days, six months and 12 months. If tax remains unpaid after the deadline, interest will also be charged on the amount owed, in addition to the penalties above.

Customers who need assistance to complete their Self Assessment can access support and guidance online 24/7, including YouTube videos, webinars, digital assistant and step-by-step guidance covering different sections of a tax return. Most queries can be resolved online.  

Customers who need to speak to an adviser can call HMRC, Monday to Friday, 8am to 6pm. Phone lines close on Friday 30 January and reopen on Monday 2 February – after the deadline. For full phone support, contact HMRC before Friday 30 January. On Saturday 31 January, HMRC will offer webchat support through its Online Services Helpdesk.

The new High Income Child Benefit Charge (HICBC) PAYE digital service means thousands of Child Benefit claimants who are only in Self Assessment to pay HICBC can choose to pay the charge back through their tax code.

Eligible customers can call HMRC before the filing deadline to say they want to be removed from Self Assessment to use the digital service. Where a tax return has already been filed, customers can choose to stop from the following tax year. HMRC will then amend their tax code and they will be registered to pay HICBC through PAYE.

Customers do not need to include their 2025 Winter Fuel Payment, or Pension Age Winter Heating payment in Scotland, on their tax return for the 2024 to 2025 tax year as payments received in Autumn 2025 will be recovered in the 2025 to 2026 tax return, due by 31 January 2027.

Self Assessment customers are sometimes targeted by criminals and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

4,800 Self Assessment scams reported

  • More than 4,800 Self Assessment scams have been reported to HMRC.
  • In the last 10 months, HMRC received more than 135,500 reports of suspected scams.
  • HMRC urges people to stay alert to potential scams ahead of the Self Assessment deadline.

HM Revenue and Customs (HMRC) has issued a warning after more than 4,800 Self Assessment scams have been reported since February 2025.

Scammers use persuasive and threatening tactics to target people when they are more likely to receive correspondence from HMRC. They send fake tax demands or attempt to pressurise people to hand over personal information.

In the last 10 months, customers have reported more than 135,500 HMRC-related scams, including 29,000 scams referring to fake tax refund claims.

HMRC is reminding customers to be vigilant as the Self Assessment deadline nears and check whether the email, SMS message or phone call claiming to be from HMRC is genuine on GOV.UK.

The Self Assessment deadline to file returns and pay any tax owed for the 2024 to 2025 tax year is 31 January 2026. Customers can file online on GOV.UK.

Lucy Pike, HMRC’s Chief Security Officer, said: “Millions of people file a tax return each year and scammers mimic HMRC to try and catch unsuspecting victims out.

“I’m urging people to stay vigilant and if any emails, text messages or phone calls appear suspicious – don’t be lured into clicking on links or sharing your personal information – report it directly to HMRC. Just search ‘report an HMRC scam’ on GOV.UK to find out more.”

HMRC has taken swift action to close down nearly 25,000 fake websites and phone numbers in the last 10 months. HMRC will never:

  • leave voicemails threatening legal action or arrest
  • ask for personal or financial information via text message or email
  • contact customers by email, text, or phone to inform them about a refund or ask them to claim one

Anyone who receives suspicious communication from HMRC can forward emails to phishing@hmrc.gov.uk, SMS messages to 60599 or report phone calls mimicking HMRC on GOV.UK. Find out more about how to report scam activity to HMRC on GOV.UK.

Covid fraud cost UK taxpayer £10.9 BILLION, reveals independent report

  • Independent Commissioner finds last government’s support schemes left the front door open to covid fraud with £10.9 billion lost to pandemic fraudsters
  • Government has already actioned recommendations in Covid Counter Fraud Commissioner’s report – including new fraud powers and voluntary repayment scheme
  • Further action planned to retrieve lost funds and prevent repeat of mistakes in future crises 

Taxpayers lost £10.9 billion to fraud and error as the previous government’s pandemic response left the front door open to fraud, an independent report reveals today. 

The Covid Counter Fraud Commissioner, Tom Hayhoe’s, final report to Parliament finds many schemes – including Bounce Back Loans and Eat Out to Help Out – were rolled out with huge fraud risks and no early safeguards – costing the taxpayer millions.

Weak accountability, bad quality data and poor contracting were identified as the primary causes of the £10.9 billion pound losses – which were enough to fund daily free school meals for the UK’s 2.7 eligible million children for eight years.

Chancellor Rachel Reeves appointed Tom Hayhoe in December 2024 to ensure mistakes of the past are never repeated, with this government already recouping almost £400 million of covid support cash.

Chancellor, Rachel Reeves said: “Leaving the front door wide open to fraud has cost the British taxpayer £10.9 billion — money that should have been funding our public services, supporting families, and strengthening our economy.

“We have started returning this money to the British people and we will leave no stone unturned in rooting out the fraudsters who profited from pandemic negligence.”

The government has already actioned many of the Commissioner’s early proposals. These include: 

  • A voluntary repayment scheme, launched in September, giving claimants until 31 December to pay up. 
  • Tougher sanctions powers through the Public Authorities (Fraud, Error and Recovery) Bill, which became law on 2 December. 
  • Specialist fraud recovery teams to track down suspected fraudsters and recover taxpayer cash, from 2026.

Josh Simons, Cabinet Office Minister, said: “We’re taking more action to bring fraudsters to justice and make the state the hardest possible target: giving investigators new powers to take on cases, using artificial intelligence to speed-up counter-fraud work, and setting up a repayment scheme to claw back money into the public purse.”

The report highlights that counter fraud controls were ‘inadequate’ and only improved later in the pandemic. Hayhoe makes further recommendations to ensure the country is prepared for further crises that need an economic response from government – emphasising that future preparation and robust controls will provide the best value for money for taxpayers.

The government will consider the report in full and respond early in the new year. 

HMRC asks Self Assessment customers in Scotland ‘What’s your filing style?’

With less than two months until the Self Assessment deadline, HM Revenue and Customs (HMRC) is asking people filing their tax return for the 2024 to 2025 tax year ‘What’s your filing style?’ and encouraging them to start now.

HMRC is launching an online poll asking people to pick how they choose to file.

Are they an early bird – filing within a few days of the new tax year, a dipper – someone who dips in and out throughout the year – or, a last minute panicker – rushing to submit their form in the last hours of 31 January?

The poll will run on HMRC’s X, LinkedIn and Facebook channels for 7 days.

Last year 735,316 Self Assessment customers in Scotland filed before the 31 January deadline. In total more than 11.5 million taxpayers filed their 2023 to 2024 tax return on time.

Millions of people have already filed their tax return for the 2024 to 2025 tax year, with 58,000 early birds returning theirs on 6 April 2025 – the first day they could. Customers can complete their tax return for the 2024 to 2025 tax year on GOV.UK.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: ““For customers yet to file, there’s still time to start and submit an accurate tax return. Don’t leave something as important as your tax return to the last minute. Go to GOV.UK to start today.”

Those who start their tax return early can take their time to access the range of online help available to them. Once started they have time to dip back in as many times as they need to check it’s accurate before submitting.

Those who file their tax return early don’t need to pay their tax bill straight away but can consider the best way to settle it ahead of the deadline.

The quickest and easiest way to pay is via the free and secure HMRC app although a full list of alternative payment options are available on GOV.UK.

For customers who are unable to pay their tax bill in full, HMRC may be able to help by arranging an affordable payment plan, known as Time To Pay. They can set up a plan online on GOV.UK. Alternatively, they can contact the helpline.

If anyone is unsure if they need to fill in a tax return for the 2024 to 2025 tax year, they can use the Self Assessment checker tool on GOV.UK where they can also register and notify HMRC if they no longer need to complete one.

Child Benefit claimants who would only file a tax return to pay the High Income Child Benefit Charge (HICBC) can now opt out of Self Assessment and choose to pay it through their tax code via the new PAYE digital service.

Eligible customers can call HMRC to de-register from Self Assessment before the filing deadline. Where a tax return has already been sent, customers can choose to de-register from the following tax year. HMRC will then amend their tax code and they will be registered to pay HICBC through the new PAYE digital service.

Customers do not need to include their 2025 Winter Fuel Payment, or Pension Age Winter Heating payment in Scotland, on their tax return for the 2024 to 2025 tax year as payments received in Autumn 2025 will be recovered in the 2025 to 2026 tax return, due by 31 January 2027. More information can be found on GOV.UK.

Self Assessment customers are at increased risk of being targeted by criminals and should never share their HMRC login details with anyone, including a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Regional filing figures for 2023 to 2024 tax year:

AreaTaxpayers filed by 31 January 2025
North East299,933
North West1,008,962
Yorkshire and Humber752,622
East Midlands732,126
West Midlands846,517
East of England1,217,512
London1,993,782
South East1,941,142
South West1,122,640
Northern Ireland269,220
Scotland735,316
Wales432,488
All11,519,566

Christmas crafters urged to check tax rules 

  • Side hustlers selling festive items need to tell HM Revenue and Customs (HMRC) online if earnings exceed £1,000 a year 
  • HMRC’s Help for Hustles campaign supports people earning extra income during festive season to understand tax obligations 
  • Online checker tool can clarify if and when side hustlers need to report their additional income  

People making money from Christmas crafts, seasonal market stalls, or selling festive items are being urged to check if they need to tell HMRC about their earnings. 

As the festive season approaches, HMRC’s Help for Hustles campaign is reminding anyone earning extra income from activities like making Christmas decorations, upcycling furniture for seasonal sales, or running market stalls, that they will need to tell HMRC if they earn more than £1,000. 

The campaign’s guidance explains the important distinction between simply decluttering homes by selling unwanted personal belongings – which doesn’t usually require reporting to HMRC – and trading activities like making items to sell for profit, which may be taxable. 

Anyone who earned more than £1,000 from side hustles in the 2024 to 2025 tax year will need to register for Self Assessment as a sole trader, file their return and pay any tax due by 31 January 2026.

This £1,000 threshold applies to all trading activities combined – so someone earning £600 from craft sales and £500 from content creation would need to register as their total exceeds £1,000. 

Visit GOV.UK to file a Self Assessment tax return online for the 2024 to 2025 tax year and pay any tax owed. 

Kevin Hubbard, HMRC’s Director of Individuals & Small Business Compliance, said: “Whether you’re making handmade Christmas decorations, selling upcycled furniture, or running a seasonal market stall, it’s important to understand when your festive side hustle becomes taxable trading. 

“Nobody wants an unexpected tax bill, so anyone earning more than £1,000 from their side hustle should tell HMRC. Our Help for Hustles campaign provides clear, straightforward guidance to help people get their tax right.” 

Graham Wilson OBE, National Association of British Markets’ Deputy Chief Executive, said: “Markets are an important part of Christmas celebrations and every year, town centres around the country witness thousands of traders enriching the festive atmosphere. 

“As the national organisation for market operators, we want to encourage all traders, particularly those who are trading for the first time, to be clear about their obligations for tax arising from their earnings and we welcome the guidance and support provided by HMRC on this important issue.” 

People can use a free online checker on GOV.UK to find out if they need to tell HMRC about additional income. Guidance is also available on the Help for hustles campaign page, explaining the different types of side hustles, including selling items, providing services and creating content. 

Let’s talk about tax with the HMRC app

  • HMRC encourages families to start financial conversations this Talk Money Week (3 to 7 November) using the HMRC app. 
  • More than 5.6 million people have accessed the app this tax year. 
  • The app is a quick and easy way to get information about your tax, National Insurance and State Pension forecast. 

HM Revenue and Customs (HMRC) is encouraging families to start financial discussions and use the HMRC app during Talk Money Week (3 to 7 November) as it reveals its most popular app services. 

This year’s Talk Money Week theme is ‘start the conversation’ and the HMRC app provides tax and financial information for all ages. People can view and save their National Insurance number, claim Child Benefit and check their State Pension forecast.  

More than 5.6 million people have used the HMRC app since 6 April 2025 and the most popular services include: 

  • checking their pay before it lands in their bank account and other Pay As You Earn (PAYE) information – 4.14 million users
  • viewing their annual tax summary – 1.94 million users
  • viewing or saving their National Insurance number or checking contributions – 1.79 million users
  • checking their State Pension forecast – 1.49 million users
  • viewing their Self Assessment summary and making payments – 1.19 million users

The whole family can help each other with financial planning, whether it’s grandparents helping their teen grandchildren understand National Insurance, or discussions on how to check State Pension forecasts. Anyone can join the millions of customers using the HMRC app to get frank family financial conversations started. 

People can download the HMRC app to their Android or iPhone. Once set up, they can start using it straight away to view their tax information or update personal information, for example their name or address. 

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “It’s not always easy talking about finances, especially between generations. As part of Talk Money Week, we’re encouraging families to lean into talking about money.

“From budgeting tips to tax basics, the HMRC app makes it easy to access tax information and kick start those important conversations. You can download the HMRC app today.” 

HMRC has today launched its refreshed HMRC app campaign to encourage people to be ‘On It’ and use its digital services. People using these services can access information and be reassured that  tasks like claiming Child Benefit, signing up to Help to Save or claiming a tax refund, are completed. 

Directors planned £20m tax fraud at secret meetings

HMRC: West Lothian family sentenced

A network of corrupt company directors has been jailed for more than 70 years after they were caught planning an elaborate multi-million-pound tax fraud during clandestine meetings.

The company at the heart of the fraud, Winnington Networks Ltd (WNL), deliberately understated how much VAT was owed to HM Revenue and Customs (HMRC) between 2011 and 2014.

Key evidence was secured when WNL’s Financial Director, Neil Pursell, 60, and key players, were caught conspiring at two hotel meetings held in Manchester and Birmingham in late 2013.

At each meeting, the men openly discussed the fraud; the mechanics and how they could just “invent the numbers” to falsely offset their output VAT claims.

Three earlier trials have already resulted in prison sentences of more than 62 years and Director disqualifications of more than 100 years.

The fraud, which was described by trial Judge Dafna Spiro as “complex and highly sophisticated” saw WNL generating VAT by creating price drops on metals and electrical items they sold via a contrived chain of business transactions outside the UK.

After adding VAT back on to items and selling them at competitive rates to real customers in the UK, Winnington set about offsetting the VAT they had created.

They did this by falsely claiming they had sold VOIP (Voice Over Internet Protocol or telecommunications/internet airtime) to UK suppliers.

Richard Las, Director of HMRC’s Fraud Investigation Service, said: “This incredibly complex fraud was dismantled thanks to the tenacity, skill and dedication of our criminal investigators.

“I hope this sends a clear message to anyone involved in tax fraud that regardless of how complex it may be, we have the skills, resources and the determination to catch you and to bring you to justice.

“The scale of the sentences and the significant director disqualifications show how seriously the courts have treated this sustained and sophisticated attack on the UK tax system.

“Tax fraud is not a victimless crime. It steals money that funds the public services we all rely on and I’d urge anyone with information about any type of tax fraud or money laundering to report it to HMRC on GOV.UK.”

The vast majority of VOIP was fake, but WNL and the co-conspirators recruited people who owned VAT-registered businesses to issue fake documents. In return they were handed a share of the profits of the fraud.

They created multiple fictitious deal chains to make it look genuine and even created two fake offshore banking platforms, said to be based in the Seychelles and Canada, in a bid to produce a convincing set of financial records.

A nationwide HMRC operation in March 2014, led to the arrest of 15 people, searches of 36 premises (including a property in Cyprus) and the winding up of three companies.

The huge investigation ultimately led to four trials at Southwark Crown Court and the conviction of 20 people.

Alexander White, Specialist Prosecutor for the Crown Prosecution Service, said: “Kashaf Bashir, William Lindfield, Assim Rather, Vishal Chudasama,  Adeel Karamat Malik,  Beverley Thompson, and Sarah Jane Peploe were sentenced for playing important roles in stealing and laundering £20 million from the UK taxpayer.

“Together with the other thirteen convicted defendants, they helped operate a complex and sophisticated fake system of offsetting VAT payments to HMRC, money which was meant for public services but was instead stolen for their own selfish purposes.

 “The CPS has commenced proceeds of crime proceedings against all of these defendants to claw back this illegally obtained money.”

All 20 people were convicted of or admitted either conspiracy to cheat the public revenue or money laundering offences.

Three family members from West Lothian have been sentenced for their role in the £20 million tax fraud case. It follows four separate trials, with the final sentencing hearing having taken place on Monday (20 October 2025).

Leslie Thompson, of Chapman’s Brae, Bathgate, (DOB: 25/07/1962), was convicted of conspiracy to cheat the public revenue following trial one, which ended in March 2024 and was then jailed for six years.

He was also disqualified from acting as a director of any company for a period of 12 years and handed a three-year Serious Crime Prevention Order (SCPO) which begins when released from prison.

Beverley Thompson (wife of Leslie), also of Chapman’s Brae, Bathgate, (DOB: 22/12/1964), was convicted of money laundering.

On Monday 20 October 2025, Thompson was jailed for 24 months, suspended for 18 months, handed a 10-day rehabilitation activity requirement and ordered to complete 100 hours of unpaid work.

Andrew Collins (formerly Thompson, son of Leslie) (DOB: 06/06/1984), of Falside Crescent, Bathgate, entered a guilty plea on 22 July 2024 to conspiracy to cheat the public revenue.

He was sentenced to 22 months in jail, suspended for two years, given a rehabilitation activity requirement of up to 20 days and disqualified from acting as a director of any company for eight years.

34,200 families in Scotland avoid the Hallowe’en chills by using Tax-Free Childcare

  • More than 34,200 families in Scotland received an average of £100 towards their monthly childcare bills in June 2025
  • Working families encouraged to sign up to Tax-Free Childcare as UK Government top-ups totalled £57.7 million
  • Supporting the government’s mission to grow the economy and deliver on the Plan for Change

Working families are encouraged to sign up to Tax-Free Childcare ahead of the spooky school holidays to avoid tricky childcare bills as latest figures from HM Revenue and Customs (HMRC) show 34,255 families in Scotland got a savings treat in June.

Paying childcare bills through a Tax-Free Childcare account can save working families up to £2,000 per year for each of their children up to the age of 11 or £4,000 per year up to the age of 16 if the child is disabled.

HMRC is encouraging those yet to sign up for Tax-Free Childcare, to do it now to take advantage of savings on their half term childcare.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Hallowe’en doesn’t need to be a tricky time for childcare bills. Whether you’re working and have a child in a holiday club or taking time off and planning term-time care, paying your bills with Tax-Free Childcare can help. Go to GOV.UK to start saving today.”

Once a Tax-Free Childcare account is open, for every £8 parents deposit in their child’s account, the government tops it up by £2. Parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs.

In June, the government paid a total of £57.7 million in top-ups to Tax-Free Childcare accounts which means each family received, on average, more than £100 to be used towards their childcare bills.

Parents can use Tax-Free Childcare to help pay toward any approved childcare for their child – so that’s nursery for younger children or, for older children who are in school, wraparound childcare, after-school and holiday clubs.

Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.   

Families could be eligible for Tax-Free Childcare if they:   

  • have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday   
  • the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average   
  • each earn no more than £100,000 per annum   
  • do not receive Universal Credit or childcare vouchers    

Visit GOV.UK to check eligibility and register for Tax-Free Childcare.

Tax-Free Childcare can be used alongside the free childcare hours, subject to eligibility. 

HMRC: 39,800 customers in Scotland have opened a Help to Save account

£220 million boost for the Help to Save club

  • 39,800 people on a low income in Scotland have opened a Help to Save Account
  • People can save up to £50 a month and get a 50% bonus on top
  • Part of Government’s mission to grow the economy and deliver on our Plan for Change

Help to Save customers have received more than £220 million in bonus payments, and HM Revenue and Customs (HMRC) is encouraging those eligible to sign up to take advantage of the scheme during UK Savings Week (22-26 September).

Help to Save is a government savings scheme offering low-income earners a 50% bonus on their savings. Customers can deposit between £1 and £50 each month and earn an extra 50 pence for every £1 they save.

It takes just a few minutes to check eligibility and open an account online on GOV.UK or via the HMRC app.

Savers who deposit the maximum of £2,400 over the four years of the duration of the scheme will get a £1,200 bonus, with it being paid straight into their bank accounts at the end of the second and fourth year.

Latest figures show that since the scheme started in September 2018 to April 2025, 39,800 customers in Scotland opened a Help to Save account and have paid a total of £39.8 million into their savings pots.

Economic Secretary to the Treasury, Lucy Rigby, said: “The Government’s Help to Save scheme has boosted the savings of over half a million people across the country to the tune of £220 million.

“We’re committed to helping families build financial resilience and putting more money in the pockets of working people.” 

Of those who have opened an account, 94% deposited the maximum amount into their nest egg each month.

The scheme, originally due to close in September 2023, has been extended and people have until April 2027 to open an account and start paying in. It has meant that to April 2025, more than 95,000 low-income earners have been able to open Help to Save accounts, who would have otherwise missed out.

 A total of 7,800 accounts were opened in April 2025 (the highest monthly amount since March 2023) when the scheme was expanded to include all working Universal Credit claimants.

Myrtle Lloyd, HMRC’s Chief Customer Officer said: “Millions have been paid out to people who are putting aside whatever cash they can spare each month – so don’t miss out on making the most of your savings. Go to GOV.UK to open your Help to Save account today.”

A fifth of customers have opened a Help to Save account via the HMRC app. People can use the app to keep track of their deposits and view their bonus payments.

Money can be paid into Help to Save accounts via debit card, standing order or bank transfer.

Antonia Stokes, Low Incomes Tax Reform Group (LITRG) Senior Manager, said: “The Help to Save scheme is a very attractive product for people on low incomes who want to get into a regular savings habit.

“Everyone who is eligible to take part in the initiative has the chance to earn a bonus on top of the money that they put in, and these bonuses can be increased by paying in the maximum amount allowed each month and making no withdrawals.

“Those who are eligible can still receive bonus payments, even if they can’t save the maximum, which makes it an attractive option for savers.”

Money can be withdrawn at any time, although this may affect the 50% bonus payments.

Find out more about Help to Save at GOV.UK.

Child Benefit action to save £350 million from claimants abroad

Child Benefit will be stripped from tens of thousands of people who have moved abroad in a major clampdown expected to save £350 million

  • A new specialist team is expected to stop over £350 million in Child Benefit fraud and error over the next five years.
  • The move follows a successful pilot where just 15 investigators stopped around £17 million in wrongful payments in under 12 months.
  • Thousands of people who left the UK but carried on claiming Child Benefit have already been removed from the system.

Child Benefit will be stripped from tens of thousands of people who have moved abroad in a major clampdown expected to save £350 million over the next five years.

A new specialist team will use international travel data to track if claimants have gone overseas, so are no longer entitled to the payments.

The move follows a successful pilot which has already removed 2,600 people from the system who had left the UK but continued to claim Child Benefit.

A team of just 15 investigators successfully prevented around £17 million being incorrectly paid out in under 12 months.

The government is rapidly expanding this highly effective unit as part of the Plan for Change. The new team will have over 200 people from next month, sending a clear warning to those trying to scam the system. 

Cabinet Office Minister Georgia Gould said: “This government is putting a stop to people claiming benefits when they aren’t eligible to do so.

“From September, we’ll have ten times as many investigators saving hundreds of millions of pounds of taxpayer’s money.

“If you’re claiming benefits you’re not entitled to, your time is up.”

Child Benefit is paid to over 6.9 million families, supporting 11.9 million children. It is one of the most widely accessed forms of benefit in the UK and is administered by HM Revenue & Customs (HMRC).

If a claimant is outside the UK for more than eight weeks, Child Benefit payments may stop unless there are exceptional circumstances. Claimants must inform HMRC if they are outside the UK for this length of time or longer.

The pilot was carried out by the Public Sector Fraud Authority, the Home Office and HMRC. Under the Digital Economy Act, they matched a random sample of 200,000 Child Benefit records with international travel data. 

Where the data suggested a claimant had left the country, specialist investigators from HMRC stepped in to perform their own checks before deciding whether benefits were being claimed incorrectly. The pilot was concluded in under 12 months and delivered savings of over one million pounds per investigator.

Alongside tougher checks, this renewed drive will raise awareness of the rules, recognising that some errors are genuine mistakes. Every case is reviewed by a human investigator and HMRC will reach out directly to families as part of any investigation to resolve matters swiftly.

This crackdown on fraud and error ‘protects hardworking families who play by the rules and ensures every pound of taxpayer money goes where it should’.