tax credit review letter

[britishred]

i received a letter from hmrc. they are checking my award as a single person for 2011-2012. the information they have shows my husband living with me. i have claimed working tax credit and child tax credit since 2000 which is when i separated from my husband, we have never divorced. we had seperate bank accounts and i paid all the utility bills, council tax etc and the agreement was that he paid the mortgage. over the years he has used our address for loans and credit cards as where he was living he wasn't allowed to .

in 2009 after his mothers illness and eventual death we reconciled

as by then we both had alot of debt between us (i forgot to mention we have four children ) we contacted a debt management company who advised us to open a joint account and close our old ones down as we had loans with the banks. we opened the account in nov 09 and wages paid into it dec09.

he moved in the family home in jan 2010 after settling bills at his other address. i did not inform hmrc as we were paying back a huge amount on the debt plan and i felt that i could not cope. i lost my job the same year and claimed job seekers allowance for six weeks.

i found another job but have been claiming tax credit . i have no proof that he has not lived with me for a long time and our financial ties link us together .

i have contacted them and am waiting for them to ring me back. i like most others can't sleep, feel sick i haven't told my husband. what will happen to me? am i classed as a 'big fish' will they prosecute me i have claimed for so long ?

[Gbarbm]

Hi

No like most others you are a little tadpole

 

You will have to pay back what you owe either by reduction of a subsequent award or by direct payment (with time to pay - although HMRC will expect an income and expenditure statement to substantiate the time to pay arrangement)

 

Just gather as much information together as you can to provide details of your hubby's non residence and the subsequent reconciliation.

[britishred]

hi thanks for the advice. my husband paid cash to the friend he shared their batchelor pad with. there is no rent book or recorded agreement no direct debit payments to prove he lived there. the friend moved away from our area in 2010 and we have no way to contact him for proof but then his word would not suffice i guess. will they look at my claims as a whole or just from when he moved in? what evidence will they want?

[Gbarbm]

At the moment they are just looking at 2011/12

The only thing you can do is give them as much information as you possibly can.

[britishred]

does this mean that once i tell them that we reconciled in 2010 they will look at that award . i mean if i just address their query for 2011/12 they will want to know the date he moved back in.

[Gbarbm]

At this point, just give them the information that they ask for.

If they require further details they will write to you again

[britishred]

is the first phone call just to confirm their suspicions? and then do they contact you by letter then? do you know roughly how long they usually take to deal with the enquiry and do they want the money paid back asap?

[Gbarbm]

Sorry, your first post said you had a letter.

The length of time they take to deal with the check will depend upon how long it takes for them to get all the info in.

Generally speaking, any overpayment will be recovered from a subsequent award; if there is no subsequent award, a time to pay arrangement will be set up

[britishred]

well its the end of the week and not heard a thing the waiting is awful . work has been the hardest trying to ' be myself'. everyone has noticed that i don't seem myself. i hope they contact me next week i havent told my husband he didnt know that i had carried on the claim but why should i burden him with this . wanted to post on here because lots of you in the same boat. i am terrified of what they are going to ask for back i am already on a debt management plan. i cant wait to wake up like others have said and not think tax credits.

[britishred]

can anyone help? my husbands company went paperless in 2011 so all wageslips and p60 are on line, would hmrc accept a printed copy of a p60? also if they suspect you have been living together what other proof will they want to prove it and how much so that i can start getting it together ? thanks.

[Gbarbm]

Yes if the payslips etc are on line, HMRC will accept the printouts.

HMRC will, when considering if a couple live together, look at things like bank and building society accounts (to check if finances are separate) rent book, mortgage statements, council tax bill and utility bills (gas/electric/phone)

[britishred]

considering that i have been claiming in all for twelve years and we have had seperate bank accounts for ten years and a joint one for the past two years how far back are they going to want to look.

[Gbarbm]

They will initially look at 2011/12 and as you have been living together as a couple they will want to look at the earlier period

[britishred]

during 2010 i lost my job and claimed job seekers allowance. i received the basic rate £65+ a week . I claimed it for seven weeks in total , i would have been entitled to this wouldnt i? i have worked all my life.

[Gbarbm]

I'm really not sure on the rules for JSA, hopefully one of the experts will look in on this and confirm that for you or if not I can flag up the post for their attention

[britishred]

i am looking at kizzy 1972 post similar story to mine and her update suggests a jail sentence . is that what i am looking at? thats what i meant about being a big fish. those who have claimed the most ... jail them ??? i am now terrified ,

[britishred]

why are solicitors telling people not to say anything or to contact hmrc ? i thought you said they go down the non civil route. so if i sought legal advice i am doomed ???

[lis79]

i am looking at kizzy 1972 post similar story to mine and her update suggests a jail sentence . is that what i am looking at? thats what i meant about being a big fish. those who have claimed the most ... jail them ??? i am now terrified ,

 

 

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).

Edited June 2, 2012 by lis79

[britishred]

thankyou. as you can see i cant sleep. was i entitled to jsa for those seven weeks? aren't they based on national insurance contributions of which i have paid? i had about £700 in jsa in all and the first time ever that i had claimed 'dole'.

[britishred]

sorry for worrying about that but as you say dwp are more keen to prosecute,

[britishred]

the jsa i received was contribution based

[lis79]

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.

[britishred]

just found a bank statement from our old joint account and i realised that i had a debit card to that account which i had used during the time we were apart. the more i try to prove to myself that the split was legitimate so i can prove to them it was the more i realise that we were financially linked together alot. so what do i do when they ring me up and ask when my husband moved back in do i say jan 2010 as it was because then they are going to want previous years bank statements the fact that i paid all my own utilities which were in my name wont count for anything and as i have said he has no proof of previous address so what do i do ? do i say to make me accountable for the twelve years because they will have proof that we were financially linked and i cant prove he wasnt here at my address until 2010. i would rather get it over with . if i am accountable for twelve years the cost will be 80000 + i reckon isnt that a jailable amount ? please help and just tell me that a huge amount like that is a crown court case. i know you dont know the answers but in past cases what has happened?

[britishred]

just found a bank statement from 2009 and i had a debit card in my name on my husbands bank account. yes i had used it for shopping. but when they investigate i look totally linked to my husband financially and even though i paid all of the utility bills from my account the fact i cant provide proof that he never lived here and he has loans etc in this address and looks like he has financially supported me, they are going to ask when he moved back i am saying jan 2010 but bank statements etc say otherwise. so what do i say to them ? do i say make me accountable for twelve years to get this overwith? i would owe i estimate £70000+ i dont want to make myself a liar even more yes i claimed dishonestly for past two years but cant prove my innocence anyother way. i am scared to admit anything . i have spent the whole week trying to find something to prove we were apart the more i look the finances push us together. please advise me do i tell them that i have heavy financial links and let them investigate it all . if i owe a huge amount is it crown court ?

[britishred]

sorry thought last post not up tring to work out what i would owe