WARNING on Tax Credits

[Valerie Campbell]

I got a letter saying my claim for tax credits is going to be investigated. I thought this meant producing P45s, P60s and wage slips. I was wrong. The tax credit system is a back door entry for the Inland Revenue to see every banking transaction made over 2 years, including savings, credit/debit card statements, mortgage statements, utitily bills for the past 2 years, rent statements, benefits letters etc. Be warned. If you are on tax credits of any sort, you must produce these documents or you will have your tax credits reduced or stopped and can be penalised by up to £300 and £60 a day thereafter if you don't show them the information within a certain timescale. If there are any orgers not tax credits but thinking of applying, bear in mind you will be losing all your financial privacy. Here is the checklist:
'Award notifications for the periods 2005-06 and 2006-07.
Copies of P60 for the tax year and wage slips for the period 6th April 2006 to date
Copies of any benefit entitlement any member of the household have been in receipt of from April 2005 to date
Details regarding any interest received on savings during the period April 2005 to date (excluding Individual Savings Accounts or any other tax-free accounts)
Details of any income from property, foreign income or trust income
Copies of all bank, building society and savings account statements and passbooks held by all members of the household covering the period April 2005 to date
Copies of all credit card/debit card statements held by all members of the household covering the period April 2005 to date
Copies of utility bills covering the period April 2005 to date
Details of ongoing financial commitments that you have, eg. insurances, hire purchase, loans, TV/video rental etc
Copy of rent book or mortgage details and statements
Council Tax statements/ books for 2005-06 and 2006-07'
Now tell me Big Brother isn't watching?