The HMRC, Student Loans Company & JSA - Potential for benefit fraud

[eraser]

Hi there,

 

I received a letter from the Student Loans on Friday stating they`ve been notified by the HMRC (HM Revenue & Customs) that according to their records, I`m now in employment.

 

First of all, I got a call from the Student Loans mid-last year suggesting I start paying it off (loan). I rang them, told them I was unemployed and had no idea when I would have a job next. They said fine, they`d stop the money being taken out of my account. Great.

 

This new letter concerns me though, and I know I`m in the wrong although I`m asking to see if anyone here either has experience of this or knows what is likely to happen/give advice.

 

I did two small spots of temporary work just before Christmas. One was for 3 days - I was removed from the position as I wasnt getting correct grasp of the job quick enough. Next spot I got was for a picking job, £20 an hour for 24 hours. Two 12 hour shifts. I did them, got paid and paid £80 tax from the earnings, plus the little bit of NI.

 

Anyway, I`m concerned as I know I should`ve signed off, but I didnt. I should`ve signed off then back on again. Am I liable for anything here? It couldnt come at a worse time - due to potentially start a new job this time next month if I passed a recent interview. I just have a feeling a fine is on the way and potentially prosecution. My fault for not signing off...

 

I spoke to the SLC this morning, and they said I just have to send the letter back to the HMR&C with a small covering letter stating I`m still unemployed, recieving JSA as it was a one off temp job. That with my benefit award certificate. I didnt tell them the jobcenter doesnt know about it.

 

I`ve been advised to just come clean to the jobcenter about these two spots, or just the one even (December). Thing is, I`m trying to find out how much I`ll have to pay back to the jobcenter, how it`ll go and trying to make sure I wont go to court/be prosecuted. Been told it`s better to come clean to avoid potential courts when I start a new job.

 

Any advice?

 

Cheers

[MIKEY DABODEE]

Hi Eraser

the SLC found out about your work through HMRC, this is because you had to give your National Insurance number to your employer. So when you paid tax and national insurance on your pay this flagged up at the SLC as they have access to the HMRC system, which would have triggered a prompt to them as you are on their system, hence the phone call

You must therefore tell JSA about this work if its triggered a match with the SLC it must have with the JSA system.

 

Best to tell them yourself, you may end up with an overpayment but its better then Fraud getting involved.. And if you phone up and tell them about the work then you have declared it a bit late but you have

Good luck with your interview I really hope you get the job

[eraser]

Hi Mikey,

 

Thanks a lot for the reply, really appreciate it

 

It looks like I`ll be declaring it tomorrow. Still got to speak with the Citizens Advice people before the, tried them for an hour today and constantly busy.

 

Someone just told me I might have to pay back the whole JSA from when I started (Nov 2008) to now. Is this correct? If so I`m stumped.

 

If it`s just JSA for the period I worked, then fine I can do that.

[MIKEY DABODEE]

Hi Mikey,

 

Thanks a lot for the reply, really appreciate it

 

It looks like I`ll be declaring it tomorrow. Still got to speak with the Citizens Advice people before the, tried them for an hour today and constantly busy.

 

Someone just told me I might have to pay back the whole JSA from when I started (Nov 2008) to now. Is this correct? If so I`m stumped.

 

If it`s just JSA for the period I worked, then fine I can do that.

 

I am not JSA trained but if its similar to I.S the overpayment would only be raised for the periods you worked.

If a fraud file is raised for anyone caught working in a past period then the overpayment only covers the days worked by that person

 

But sure someone will correct me if its different. I cant see how they can get you for the whole period you claimed as you would have made a rapid new claim to JSA if you had signed off and you wouldnt needed to have served any waiting days, so would have only lost JSA for the days you worked,

Speak to CAB but ring the Department as well, get in there first

[steveonly20]

I too had the same letter stating that HMRC had informed them that I had resumed employment and the I would be eligible to start repaying my Student Loan again.

 

I cannot understand why as I suffered a serious illness halfway through my studies that resulted in me leaving the course and having to leave my place of employment and have on record that it is unlikely I will be unable to work again due to the nature of my disability.

 

Has anyone else received this letter? What is going on?

[eraser]

I`ve been told to ring the CAB first thing tomorrow morning, although I tried today for an hour.

 

Apparently I just have to play dumb here. Although truthfully - the 2nd allowance over Christmas didn`t go in on time, so I thought the JC might`ve cottoned onto the work, therefore I wouldn`t need to tell them. I also was intending to sign off albeit, I forgot.

 

I forgot when I signed on over the 14th as well, although they won`t believe me with that.

 

So hoping tomorrow they`ll accept it as a dumb thing to do, put me into overpayments and take it out my allowances till the £350 is payed off. Or my allowances since then.

 

Worst comes to the worst, I get a caution and get my allowance stopped.

 

Anyone else had this experience? Student Loans require £1250 p/m minimum, so the temp job there measures up to that, even though it was only 24 hours work. But that`s where they would`ve gotten it from...

[RaeUK]

...Student Loans require £1250 p/m minimum...

 

Which equates to £15,000 p.a. before anything else. Erm, are they assuming you're on 50k+ ? Their requirements, I'm afraid, would be a little lower on my list of debt priorities...

Rae.

[eraser]

Sorry, I don`t get what you`re saying here The student loans company asking me about employment isn`t such a concern, the main concern is the Jobcenter

[RaeUK]

Sorry to confuse you, eraser, I was contemplating the part of your post I qouted...

Rae.

[eraser]

No worries, just have to see what the CAB say I guess.

[eraser]

Hello, got a question.

 

I`ve not been able to get through to the CAB about this issue, although I`ve arranged to speak with the Jobcenter about the issue. They don`t know what it`s about, only that it`s a private matter to be discussed...

 

When you declare work, do the JC ring up the agency to confirm the work? Or do they just stick this in the books?

 

Cheers.

[MIKEY DABODEE]

When you phone up or see the Jobcentre just declare all the work you have done.

Days worked and hours.

[Nick]

No matter how you dress it up benefit fraud is a criminal offence. You may have only worked for 2 days but at £20 ph grossed £480 which is equivelant to 7 weeks JSA. Benefits are designed for the needy not the greedy. Be honest before you end up with a criminal record

[jack1966]

always tick the little box that says words to the effect of, 'do you owe student loans',. also it takes ages to get through to the department who you contact to say your in employment, my son tried for three weeks and still didnt get through and ended up having to take a few hours of work in a new position.