Rotherham's self-employed facing tax blitz

THOUSANDS of people in Rotherham could be investigated as part of a crackdown on tax fraud.

About 2,500 self-employed businessmen and women in the town are among those who could be targeted by HM Revenue & Customs as part of a new campaign to clamp down on fraudulent claims.

Any of the 13,000 people in South Yorkshire currently claiming tax credits for the self-employed could be investigated.

HMRC teams have been examining tax credit awards paid to the self-employed and are writing to around 12,000 across the UK people whose claims may not be genuine or accurate.

A spokesman said: “Those suspected will be asked to supply evidence to support their claims.

“Overpayment may be due to a failure to notify the HMRC of changes in income.

“Anyone in that position will have to pay back what they owe.

“In the case of deliberate fraud a claimant could face prosecution and imprisonment.”

HMRC is now using credit reference agencies and data-matching to spot patterns of fraud.

Exchequer secretary to the Treasury, David Gauke, said: “HMRC is determined to take a tough approach to targeting possible fraud among tax credit claimants.

“These losses are unaffordable and unacceptable.”

There are roughly 2,500 self-employed tax credit claimants in Rotherham, 2,700 in Barnsley, 2,600 in Doncaster and 5,200 in Sheffield.