Hi caly1967 will TC look at the years you don't mention in April, and then try and prosecute you for it.

HI, I know it's easily said, but try not to worry too much. I would be very surprised if you were prosecuted tbh, as there is no material breach (it's not like you have extra money you wouldn't have had if you'd told them). I mean, I suppose they like to be informed and what have you. Maybe the letter is a standard one that is also sent to people not declaring a partner, in cases where there is a material gain to be had. What does the letter actually say regarding prosecution? Does it just say 'may be'.

Hi, I have heard similar stories on here before:http://www.consumeractiongroup.co.uk/forum/showthread.php?340142-Stopping-my-Working-Tax-Credit...-please-help!It seems they are looking into low earners work activities to check they are legit. However, everyone knows you can't guarantee that you'll earn NMW or above when you're self employed.I hope you get it sorted out soon for some peace of mind. As your business is online, I imagine there's a lot of activity on the computer you can use to show your activity - which is fortunate. I suppose it's worse if you are a novelist or a artist - as difficult to prove you are working.Have you considered getting help from your doctor for your anxiety? I think it makes the world of difference if you can just get a good nights sleep - I'm stating the obvious here, but it just makes something like this easier to deal with.

Hi I think you are very wise to disclose the information rather than let them discover it. Mistakes happen, and you're behaving honourably about it. If they decide to charge a penalty - it should be reduced. Here is a section in the manual which explains how they have a different 'compliance strategy' when a claimant discloses an error voluntarily (and unprompted): http://www.hmrc.gov.uk/manuals/ccmmanual/CCM2220.htm They have 5 years from the end of the tax year to which a error relates to open up that tax year and change it. So, I suppose they might discover it themselves by data matching. CAB are good at these things - and they have a number to call direct - perhaps they could liase for you if you are nervous about it. Good luck - I imagine they will just want the money back. Please could you post how it turns out. Hope you're worries will be over soon.

I hope you feel better soon. Try not to be too hard on yourself. In terms of the phone call they say never happened - you could request a subject access request, and they should send you a cd of all phone calls with the tax credit office. I suppose you could try and find a record of phone history - but know that's not easy when it's so long ago. Have you read the civil investigation and criminal investigation policy on HMRC website: http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/fraud.htm There are some very knowledgeable people on here, who go out of there way to help people so I hope someone will come along soon for you. Have you tried the CAB - they can be good, and usually have direct number to a supervisor. You could just get them to ask a question in principle anonymously - 'will I be prosecuted if I go back on my story now' for example. Get them to give answers to a hypothetical case. As I said, don't beat yourself up about it too much - people make mistakes. I can understand why someone would panic during a telephone call and just go into denial mode. I've read on this forum sometimes that the tax credit office staff can be quite understanding sometimes. Anyway, you clearly regret it now, and I've just read the info from the link above and it seems that it goes in your favour if you co operate. I really wish I could tell you exactly what to do to sort it out It's true that tax credit fraud is prosecuted less than Dwp/housing benefit fraud though - at least this is in your favour.

Does anyone know if class 2 national insurance contributions (those which you pay when self employed) count towards paying your stamp, so you can claim old age pension? I'm aware that this is part of what national insurance pays for - but I just want to make sure that 'class 2' does entitle you to this (i.e. pension and other benefits) Thanks in advance for any help

What form of tax credits do they currently claim? Do you have siblings they are claiming for? Or do they receive working tax credit? If they are not currently getting anything from them, then that is a bit odd and probably a mix up.

Hi shadow2007uk, Just wondered, did you ask them directly whether or not they will look into previous years? xx

Ps - you could try posting this question on the benefits/dwp section - there may be someone to help you there

Hi britishred. DWP usually look to prosecute people when the overpayment is over £2000 - and yours is £800. I think have can do it for lower if they want though. Have they been in touch with you yet?

Oh I'm really happy for you

Hi, Did you manage to get in touch with them today?

I'm not sure how normal that is, maybe they always put that at the end the letter..... and as you were already going to do - probably ringing them to ask is the best thing. I suppose at least they just mention it at the end, rather than sending a letter that only mentions criminal proceedings. Maybe when you ring you could ask what the time limit is for bringing about prosecution. Otherwise, how are you going to have any peace of mind ever if they leave things at this? For Housing benefit and JSA fraud the time limit for prosecution is 1 year after offence, or within 3 months of sufficient evidence coming to light. However, tax credits don't go by this law, so they will have there own rule (don't know what it is though). It's horrible leaving you in limbo like that. I hope it's just a badly worded letter and that there's no reason for you to worry. Sorry I can't be of any help.

What does the letter actually say... does it say it 'might' lead to penalty or prosecution? Is that the core of the letter? or is it a general letter that mentions penalty/prosecution at the end of it (if that makes sense). Have you ever made a mistake with tax credits before?

Don't mention it! It's a huge post: http://www.netmums.com/coffeehouse/house-garden-194/money-finance-entitlements-267/290860-tax-credits-review-team-letter-39.html But you'll have hundreds of similar stories to read through if you're interested. It's unclear whether the single investigation in 2013 will be for current claims at that time - or previous ones.

This seems to be what is happening - not heard of any penalties being given/court cases. There is a big post on this on netmums, don't know if you've seen it already. They seem to be just looking at the past two tax years, except where people are appealing against the decision to pay back the money (in which case they investigate back further). They typically say they are not looking at previous years 'at this time', which sounds a bit ominous if you ask me. But they've just asked for money back which is taken off future awards, and this can be adjusted so it doesn't leave you in hardship. Anything not paid back over 10 years is written off. I think it'd be good if you saw your doctor. Maybe they could give you something to get a decent nights sleep, and then things might seem better. Your mind will be suffering even more when you've gone with food and sleep. I suppose you don't need to go into details with the doctor if you're not comfortable- just money stress.

I can't offer professional advice, but hope I can help you stop worrying a little I recently read about this lady: http://www.thesun.co.uk/sol/homepage/news/politics/4174923/Benefits-cheat-mum-invented-10-children.html Think she had told them she was disabled and her children disabled, but was only prosecuted after repeating the fraud for another year, more or less straight afterward being told to pay it back. Initially it was a civil case, and she was told to pay back £25 000. Another thing which you might/might not know, different standards of evidence are needed in a civil case and a criminal case. Criminal case: Beyond all reasonable doubt Civil case: on the balance of probabilities In other words, to ask for the money back in a civil case, the evidence need only 'suggest' he lived with you, in a criminal case there'd have to be no doubt at all that he lived there. What factors are involved, I'm not sure, you'd probably have to look at previous court case, case notes. Although the amount of money is a factor, it's definitely not the only factor. It shouldn't be really, had they asked these questions earlier, you would have changed your financial arrangements and there'd be less money involved. People who are investigated earlier would be at an unfair advantage, if you see what I mean. I know it's easily said, but try and get some rest from worry if you can. Have you seen the doctor regarding anxiety?

Yeh, I've heard of contributions based too, so think you safe from them too. Best look on benefit calculator, but yeh think is ok.

Don't assume you're going to jail just yet britishred. I know you are very worried and probably can't be talked out of it, but I think it might turn out not as badly as you think. So long as you co operate, HMRC favour civil investigations. They say that themselves, and if the stories over recent years on this forum are anything to go by, this seems to be the case. Solicitors aren't infallible either - maybe the solicitor was basing his knowledge on experience of JSA fraud (in which case they are more keen to prosecute).

Hi, I know it's easily said, but try and get some rest from worry. I think if there isn't much difference in the prices between creche and childminder - then the overpayment won't be a huge amount. It they were going to prosecute, they would take into account how much money is involved. If you've only been wrongly claiming for under a year, I doubt it would be very much money. Also, your claim was failure to report a change in circumstance, rather than a false claim from the start (the latter is considered worse) - so that's in your favour. You've probably read the threads on here already - but I can't think I've ever read one where the person was being prosecuted...(although possibly some people don't come back and tell us). Sometimes they can do a notional offset of the overpayment. This means they will take into account what you would have been entitled to if you'd done a joint claim - and only pay the amount above this back. They usually just tend to take the money off future awards, or if you are no longer entitled ask for it straight back. There are lots of people going through this on net mums. The outcome is usually that they ask you to pay it back and that's the end of it. They have had a payment plans worked out, and anything they don't pay back after 10 years is written off. I've not heard court mentioned so far. They tend to prefer civil investigations (such as yours) to criminal investigations. It's always best to be honest with them as a civil investigation can turn into a criminal investigation, if you give false statements during civil investigation and get found out. http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/fraud.htm#b This explains things well. It sounds to me as though you've just been a bit negligent rather than fraudulent though. But in there own words, even in cases of fraud they give the claimant a chance to co operate. Hope you feel better soon.

HI Is your partner working? If not, then your joint income won't be increased..... so the amount you receive won't decrease. (I think) Also, the amount of tax credits you get is based on the past tax years income. So if you were both on JSA last year, maybe even if you add your incomes (JSA) together - you are still within the same band of tax credits (payment wise). If it's not this - then I'm not sure sorry. Someone else will be around to assist soon, so keep checking.

Hi - I just want to first apologise if what I said has given people more stress. I know it's the last thing you need, and I'm sorry. What I said is based on this: http://www.dwp.gov.uk/docs/single-fraud-investigation-service-wr2011-ia.pdf

Hi Just wondered, did you claim prior to 2010-2011 (i.e.2009-2010) also? I'm just trying to work out why they are generally asking for 2010-2011 and 2011-2012 and no previous years. In other words when did the claim begin? They say to some people on net mums that even though they know the previous tax years are also wrong, they are not asking for them back. It's like they want you to keep some money for the time being, so maybe they can come back and punish people more severely in time to come - maybe when the investigation procedure has become harsher in 2013?

Hi Robluke, They may still paying you tax credits because there is a 4 week run on to give you time to claim other benefits. On the other hand, it could well just be that they haven't got round to opening the letter yet as you probably suspect?

Thanks v much for replying suzi72 Is it an option to pay back a previous tax year (i.e. 2009-2010) even though they are not asking about it in a review? i.e. for the reason that, the circumstances for that year are no different - when compared to later years you've had to pay back) If you volunteered to pay it back, would you just get a repayment notice, or would they fully investigate it and ask you to send stuff in? Do you think that offering to pay it back (just for peace of mind) is as good as admitting fraud... even if it was a mistake? ?In their eyes, are you likely to look more guilty? which might lead to further action. Thank you for your help.