Tax Credits - what an idiot I've been

[Dafty21]

I'm not looking for sympathy here and I know I've been a complete idiot.

 

I owe tax credits roughly £2500.

 

I haven't updated my income since 2003-4 due to sheer laziness and neglect on my part.

 

Going on what I earn now, and what I have earned the past 4-5 years I am not entitled to any tax credits but am still receiving the minimum amount.

 

I want to come clean and tell them.

 

Can anyone tell me how to go about this?

[ErikaPNP]

You can either phone them and come clean on 0845 300 3900, or write to them. Either way, it will be referred to the investigations department - who will contact you about it, likely in writing. You will have to repay the full amount that you were not entitled to, and a penalty on top. For the amount you mention, it's likely that the case will be dealt with by civil investigations rather than criminal investigations.

 

They will get in touch with you to clarify some information. This is known as giving you the opportunity to give them "full disclosure". If you give them full disclosure, it can reduce the amount of the penalty by up to 50%. If you don't give full disclosure, they can discontinue the civil recovery and refer it to criminal investigations.

 

I've posted a lot more information about tax credit fraud and the investigation teams here as well as posts by other members which you may find helpful.

 

Erika.

[Dafty21]

Thanks for the prompt reply - I'm terrified I will be taken to court for this - I would lose everything. I am ashamed of what I have done.

[Dafty21]

I have only ever received 8 payments of £545 / year from tax credits and I reckon the first three payments I was fully entitled to and maybe part of the fourth.

 

I suppose I will have to bite the bullet and contact them rather than them contacting me which would probably happen sooner or later.

[ErikaPNP]

Thanks for the prompt reply - I'm terrified I will be taken to court for this - I would lose everything. I am ashamed of what I have done.

 

Highly unlikely for the amount you mention, particularly if you willingly admit to it without waiting for them to find out, and provide full disclosure.

[Dafty21]

Thanks for your concern - I can't believe I didn't tell them earlier - as you can see by the mount involved I certainly didn't do it for the cash!

I've just been lazy and irresponsible though I guess Tax Credits will look on it as fraud which is understandable.

I think I'll need to write it all down as trying to explain it all on the phone would be a nightmare.

 

Is there anyone else out there in a similar position?

[Dafty21]

Just an update to let you all know I contacted HMRC and I have to pay the cash back with a small fine.

 

I would advise anyone who has been overpaid to contact them as soon as possible and dont wait for them to contact you.

[ErikaPNP]

Thank you for the update, Dafty21, very good of you to let us know the outcome.

[A_wee_fella]

Good advice dafty, there are plenty more of these to come.