Tax Credits Act 2002 section 36A

Loss of working tax credit in case of conviction etc for benefit offence

Section 36A provides for the loss of working tax credit where a person has been convicted of, cautioned for, or agreed to pay a penalty in respect of a benefit fraud offence.

• A person who is convicted of, cautioned for, or agrees to pay a penalty for a benefit offence faces a disqualification period during which working tax credit is not payable
• The disqualification period is three years for a relevant (i.e. more serious) offence conviction, 13 weeks for other convictions, and four weeks where a penalty is accepted or a caution is given
• For joint claims, the working tax credit is lost for both members of the couple, although regulations may allow a reduced amount to be paid instead of a complete loss
• A benefit offence covers offences connected with claiming or receiving a disqualifying benefit, as well as attempts, conspiracies, and acts facilitating such offences

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