I know TC have the power to do this (s19 TCA) but have never seen this level of detail requested. This appears to be a routine random 'test check' with no implication of fraud.

The documents requested are (for 05/06 tax year):

bank & building society statements
credit, store & charge card statements
investment income
any other income
gas, electric and telephone bills
council tax bill
HB/CTB award
tenancy or mortgage agreement
Sky or cable TV contract
P60 or P45
contract of employment and normal work pattern
childcare agreement and receipts for payments
childrens birth certificates and confirmation they resided with claimant throughout tax year
AND completion of a detailed income and expenditure sheet.

This is clearly a standard list as not all of the above apply to the client.

You can appreciate the reaction of the claimant. And they wonder why people are reluctant to claim TC's!

Has anyone else seen similar request on a routine enquiry?

I haven't come across this myself but loking at the list of requested information, there are at least 5 items which are utterly irrelevant to TC entitlement. s19(2) states:

19(2) As part of the enquiry the Board may by notice-
(a) require the person, or either or both of the persons, to provide any information or evidence which the Board consider they may need for the purposes of the enquiry,

It strikes me that the notice requiring the information may be open to challenge, perhaps by JR as if the board consider they need copies of e.g. TV contracts, they are acting outside Wednesbury reasonableness

COuld there also be HR implications iro right to private and family life?

Yes, very detailed list of information being requested and I have seen such a request before. Whilst on the surface some of it may appear irrelevant to the TC claim, it is a standard list to check all possible avenues of an erroneous or fraudulent claim. Whilst they may not be suggesting fraud in this particular case when they start an enquiry that thoroughly check the case and eliminate all avenues. The TV contract etc. would be requested as possible evidence of a living together situation where the claim is for a lone parent. I agree with previous postings that these requests are intrusive to say the least. If you have ever seen the notes of one of their enquiry "interviews" you'll know just how intrusive they get with questioning of the client as well. And of course PACE regulations don't apply to compliance "interviews" so clients end up feeling more like they've been interrogated!

Can you confirm what you said about "compliance interviews" not being subject to PACE. I have to admit I always thought they were.

Nope, no PACE - see their own website - the Compliance manual, section CCM5000 addresses "meetings" with claimants and the rules around them. PACE is unnecessary for HMRC officers because they have such wide ranging powers to end awards, declare overpayments and impose penalties without any need for prosecution. And because PACE doesn't apply, we need to fight harder for our clients becasue these "meetings" can go on for hours with no breaks etc.

Peter

As "old" tax hands we are used to excessive requests for information from HMRC.

However we are trying to ensure the Compliance arm of HMRC are "proportionate" in their requests for information with tax credits.

You have produced a perfect example of unproportionality.

Would your client be prepared for you to pass some details to me, provided he/she were not identified?

If so could you send details to me via the Contact Us pages of our website at www.litrg.org.uk?

regards

John Andrews
Chair, Low Incomes Tax Reform Group