First time I've come across a scenario like this with Tax Credits & would appreciate advice. Client being investigated re potentially fraudulent claim (cohab allegation plus other issues). Has been arrested, not yet charged- investigation continuing- solicitor assisting with criminal aspect. Client has not been notified of any CTC/WTC overpayment. I contacted IR on client's behalf to query when overpayment decision would be made so that client can appeal- have been told that as there is ongoing criminal investigation no appealable (civil) decision will be made- it will be up to the court to decide if there is an overpayment if the case goes that far. Does that sound right? shouldn't the situation be the same as with HB, IS, etc, where an appealable decision is made regardless of any criminal proceedings, albeit the DWP/LA are usually reluctant to go ahead with the appeal until any criminal proceedings have been dealt with. Or am I completely wrong? (Nothing new there...)

it doesn't sound right. Normally, no overpayment decision can be made until the conclusion of investigations, but neither can a decision to prosecute. it sounds odd that an arrest has been made during cohab investigations, but maybe there are other factors unclear to me.

with social security benefits, an overpayment decision is requisite in prosecution cases, which are mainly under the Theft Act. The size of the overpayment also informs the decision to prosecute, itself. The prosecution informs the court of the amount of benefit overpaid, and the court determines whether an offence was committed in the obtaining of the benefit.

i don't have experience of tax credit overpayments, but i can't really see it being greatly different. the information given to you implies a radical shift in jurisdiction from the Inland Revenue to the criminal courts, to determine tax credit overpayments. i don't think it can be correct...but i also have been completely wrong before...

btw, you might find the rightsnet link to the tax credit prosecution policy interesting if you haven't seen it.

jj

http://www.rightsnet.org.uk/cgi-bin/forwardsql/search.cgi?template2=user_details2.htm&output_number=1&sort=news.submission_date+desc&news.ID=&start=138

Thanks for that and the link. Will continue to investigate...