HMRC has issued a prior information notice in a bid to secure potential suppliers to help prevent fraud and reduce tax credit error and slash abuse and errors within the system that cost the taxpayer £2.09bn in incorrect payments in 2011-12.
The notice aims to 'add capacity to HMRC's existing workforce in order to significantly increase the number of successful tax credits compliance interventions, and to drive down error and fraud'.
HMRC ran a small-scale trial from May to July 2013 with Transactis and sub-contractor Bosch. It resulted in 16,000 cases being reviewed, with 5,500 identified as containing error and fraud, and £20m of potential losses identified.
An engagement event will be held by HMRC on November 14 to 'allow suppliers to present to the department project team'.