Tax Credit Letter, scared please help!

[Nicki19]

Hi, having read numerous stories on here similar to mine i am looking for some advice. Please don't judge me as i am already deeply ashamed and distressed by what i've done, i am almost relieved that i am not going to lie anymore.

 

I have claimed for over 5 years as a single claimant, i work full time and my son is currently at college, i have debts of around £14k and have been considering entering an IVA due to the debts, this is why i never declared to TC as this has helped pay my debts, they were 19K, I have never told my OH the extent of my debts and i have always paid my debts myself, they were racked up from a previous relationship (my son's father has never contributed to his life).

 

OH contributes towards the mortgage 75% each month, pays the gas, electric and phone, all in his name, i pay the council tax and water and we have a 2nd mortgage secured on the house which still has 10 years to pay...... now this is where the problem has occurred they have done a credit check and know he lives here, no point denying it, they are asking for bank statements, copies of utility bills, from 2011 onwards.

 

I had already decided that i wasn't going to renew the latest renewal when it runs out in July as i knew it was probably a matter of time before they contacted me, i know i have been totally stupid, but if i hadn't done this i would probably have done something even more stupid due to the debts.

 

What i need to know is do i just write to them saying i want to repay what i've been overpaid, i'm guessing they are only interested in anything from 2011, our joint income is 37k so would not have been entitled.......we have only had one holiday in 5 years which was paid for by my mother when my dad died, we certainly don't live a high life, OH has his own c/c debts etc, so money is already tight. We don't socialise as we don't have any friends, we moved to a new area after last relationship with son's dad broke down, both of us have steady jobs but we work with people much older than ourselves, plus as previously mentioned pretty much all of our income goes straight on debts and trying to support my son through college.

 

I just feel sick, don't know what is the best thing to do, i want to ring them but i am scared they'll start asking about dates etc, if i am totally honest with them how long i have claimed i dread to think how much i would owe them, if it's only the last 2 years then that will be about 6K and that's without a fine as i am sure they will do that too!!

 

Any help would be greatly appreciated, so scared right now!!

[Nicki19]

I didn't sleep last night, i have told OH about the letter last night, he hit the roof as he wasn't aware i was claiming...the fact i've been using the money to help my son with college and debts doesn't seem to matter, he works for the jobcentre and said if they investigate this further he'll lose his job.

 

After reading more posts through the night, it seems most people are brave and they ring up and confess, will this help...i haven't got a problem with repaying as it's money i shouldn't have had, i also looked at the paperwork last night and the info they are asking for is for 2012-13 not the previous year as i first thought.

 

Will they just accept a repayment, i am going out of my mind.....i am currently on my break at work, i have no one i can talk to i am so worried and not looking forward to going home tonight.

 

Please can someone give me some advice, thank you in advance!

[Rachie 1983]

I'm in same position, but with child care, I have Edna whimp and sent a letter confessing that I thought I had advised of child care last renewal, I'm awaiting a reply, it's very worrying thou, just write and tell them you need to make a joint claim

Xx

[Nicki19]

Hi Rachie, thanks for taking the time to respond, i won't be claiming as a couple as our earnings would be too much to qualify, we've had a very up and down last couple of years anyway due to the fact my son's father has never supported him, and the only reason i didn't declare OH was due to the amount of debt i am in.

 

I will definitely have to go on a DMP or IVA as i was receiving £52 a week, so my calculations if they only take last years claim into account i will owe them around £2750 and that is without any fine they impose.

 

I just feel sick, i can't concentrate and in my job it involves alot of data that has to be accurate, this will probably cause a split between me and OH again, as he's a civil servant and he's worried if they prosecute me and they delve further he could lose his job!

 

I think i am best just ringing them and then at least i won't have to be pondering all weekend as to what might or will happen, can't believe being in debt can lead to much worse, knowing my luck they will throw the book at me, which is what i deserve......i have tried to phone the CAB this morning but the number is constantly engaged, and i know getting an appointment for advice will not be soon enough, they want all the info by 26th May!!!!

[luckyme1609]

Hi

 

I'm just wondering if you rang and what the outcome was?

I am in exactly the same position as you and I'm ill with worry about it. I can't believe I have been so stupid. I've got until the end of the month to get all the info they've requested back to them....

I'm worried that they'll investigate further years though once they've received the info I submit for the year the are questioning.

I've got visions of ending up in prison I'm too afraid to ring them too cos I will end up in tears on the phone in so embarrassed by the fact I've even done what I've done.

Good luck, let me know how you get on

[Rachie 1983]

Hi, no not called cant pluck up the courage, just sent a letter waiting for a reply. Is urs childcare?? They must be really clamping down, I'm still worried and just want an end to it. Just send a letter explains, I just put that it was never my n tension to deliberately do this, never checked awards and have had no childcare since nov 11, I also thou need to add it back on, only at 31.00 a week not th 150 that's on at he mo.

[Nicki19]

Hi, thanks for your replies, mine is purely i have claimed as a single person, and my other half is living with me (at the moment), we've had a very on off relationship for the last 5 years.....we mainly fall out over my son's father who has never helped me financially with my son.

 

They have done a credit check and it shown OH on their probably down to the mortgage i'm guessing, but they only want 2012-13 proof why i claimed as single. In my case i have no proof, i pay 75% of the mortgage and it is in both names, i am amazed they haven't asked for other years, which is what is worrying me about when i ring them, i am hoping they are not going to ask when we started living together.....i've already decided as we've spent just as much time apart than together as a couple i am going to say i don't see him as my partner!!

 

I will be calling them this week, i am going to admit my other half is currently living here due to the debt situation (for us both) and as we have a 2nd mortgage on the house we are not in position to re-mortgage, i couldn't afford it on my own, i've thought of trying to sell the house and go into rented but the rent would be more than the mortgage, so would be worse off!

 

I am hoping they will just ask me to repay, i've had a terrible weekend, hardly slept and the thought of eating something makes me feel worse, i can't put it off any longer i have to be brave and make the call.

 

Will post back when i've spoken to them

[debthelp1]

hi there,just wondering if uve rung hmrc yet,im in almost the exact same situation as you,had my letter last week and im terrified whats gonna happen to me,i also have to get in touch with them by the 26th may,with bank statements,utility bills,rent agreement/mortgage to prove my single claim,dont see the point in sending these as they will only help to confirm i have been living with my partner and stupidly didnt let them know,i did let them know my son had left full time education,feel i should just write and confirm i have been living as a couple and should have made a joint claim and take it from there,any help as to how to word a letter would be great

[Nicki19]

Hi, sorry to hear your in the same position as me......it's a bad situation that we've both caused so should just face the consequences, easier said than done.

 

I still haven't managed to pluck up the courage to ring, i had thought the same as you and did think of writing. I don't know which outcome would be worse, my thinking was if i rang at least it would be at least on their system, where as if i were to write and admit it then i would have to wait probably a few more weeks to see their response.

 

I've been hoping someone whose been in exactly the same situation would come along and give their story and how they handled it and what the outcome was.....i know everyones situation is never completely the same but it's knowing what is the best approach, when ever i've rang them in the past i've found them to be a bit frosty on the phone, so i dread to think the sort of reaction i would get if i rang with my admission of guilt, which is what is putting me off.

[caro]

Nicki, what makes you think they will only want to go back to 2011?

 

I know this is tough but you really do need to be totally honest with them. If you do that then you are more likely to avoid prosecution. They have access to bank accounts etc so can tell what has been going on, so if you try and hide anything, they are not likely to be sympathetic.

 

I hope you don't think I'm judging you because I'm not. I understand how difficult it can be to cope when you're in debt and the charges and interest all spiral.

 

You haven't made it clear exactly what has happened. I assume that you've had a letter asking for information. Do exactly what it says on the letter and do it as soon as possible. Burying your head won't make it go away and the sooner you deal with it the sooner it will be over, and the sooner you can put it behind you.

 

Obviously you also have debts to deal with. Are there charges or PPI that you can reclaim to reduce what you owe?

[debthelp1]

hi nikki,from wot ive read on here and ive read lots!!!! seems to be they are pretty fair so long as youre honest with them.i cant face ringing as i will just crack up ,i have an appointment with cab on thursday but again from what ive read on here,they either treat u like dirt or tell you to do exactly wot ppl on here are saying,write and confess saying how sorry you are,it seems the most likely outcome if you fess up is that will just ask you to pay it all back with or without a fine but most likely with,until i read things on this forum,i was terrified i would go to prison! i still am if im honest!! however i will go see cab on thursday but i think they will only tell me wot ive already decided,to write and letter and admit yes i should have made a joint claim and how sorry i am,and that i want to start paying it back as soon as i can,i have never done anything dishonest before and am so scared,its the not knowing and imagining!! can anyone help me with wording a letter to hmrc,its nice to know nickki im not alone,

[Nicki19]

The letter they've sent:

 

We are reviewing awards and after doing a credit check we would like more information as we believe you have a partner living with you, your last award was declared as single. Please provide copies of bank statements, utility bills, rent or mortgage statement for March 2012 to April 2013.

 

As previous posts, although we've been together for around 5 years we've certainly not spent even half that time together as a couple, apart from his contribution to the mortgage, gas and elec i pay the council tax, water, which is so the house isn't repossessed this the only reason for him still being connected to me to be honest, my son's father has never contributed to his upkeep so i've pretty much classed myself as a single parent.

 

So that's the basics of it all, he doesn't even know i've been claiming, after paying his bit his money is his and all that, so from my situation it's been a case of needs must, an as i've previously said the majority of the time i've been here on my own, he tends to slope off to his dads when we fall out, an he's usually gone for months on end......the house and debt is the only reason we are still in the same situation, if the 2nd mortgage didn't exist i would just sell the house but the house wouldn't clear the mortgage and 2nd charge.

 

I still haven't decided whether to ring them or write!!

[caro]

I suggest you simply do as you've been asked.

[debthelp1]

any advice welcome

[Nicki19]

Caro.....there is no point me sending them what they are asking for, it just confirms that OH is on the mortgage, the gas & elec is in his name, we do have separate bank accounts he certainly would never want to share his account with anyone and it's always been like that,....i have no proof he hasn't been here for the majority of the time, i don't expect them to believe me either, but i will obviously have to face the consequences. I do feel in the wrong but at the same time if i had contacted them everytime he moved in or out i'd probably be on the phone on a regular basis, but perhaps that what i should have done!!!?

[caro]

It is what you should have done yes.

 

In that case I suggest that you just write a letter explaining what happened. That way you can spend time thinking about what you want to say.

 

Even if not there, has he still paid part of the bills?

[Nicki19]

Yes, he pays 75% of the mortgage, the gas and electric......if he hadn't helped the house would surely have repossessed, just annoyed with myself for just not updating them, i think i knew deep down the times when he was there i wouldn't have qualified for the help, can you imagine the state the claim would have been in, i bet even they would have been confused, i haven't particularly set out to deceive anyone intentionally if i am being totally honest.

 

I just can't decide if i should write to them, or will it be less painful on the phone, either way i have to respond before the 26th of this month.

[debthelp1]

hi nikki,i think honestly,like me,best to put it down in a letter,less way of getting confused,like i said,im goin see cab on thurs,will let u no wot they advise but i no its going to be wot im already thinking,just admit to shud have been a joint claim not single ,say sorry an hope for the best possible outcome,i am so scared but dont see wot else i can do,i am hoping the fact i let then no my son left full time education and let them no straight away lets them see i was honest in some way

[Nicki19]

Hi, yes i think the letter is the way to go too, i just don't know if i can stand the wait for them to reply, plus i am expecting them to write back saying they want more info.....i've never been in such a state i just want it over with, if i phone them i think i'll just say i didn't think i was doing wrong as most of the time i've been here on my own. Good luck with your meeting on thursday, be interesting to hear what they have to say, can you ask them what the best approach is (apart from just being honest). I think the fact you told them your son had left full time education should go in your favour. It is good to know we're not the only ones in this situation, it's amazing how being in debt can blinker the reality of the situation.

[slgsue]

Hi Nikki, are you still claiming? If so, I would suggest you ring them and tell them you need to cancel your single claim as you are aware that your circumstances would mean you need to do a joint claim. They will ask if you want to do a joint claim and then if you do will need OH's details and a new claim can be done.

I agree you need to send what has been requested, as for him being on the mortgage I think they will understand that this is normal as many separated/divorced people still have joint mortgages. The worst case scenario from how I see it is you will need to pay back all the years claimed as single, but its better than living a lie, feeling rubbish, being unable to sleep and getting on with your life. I know how hard it is to get out of the cycle, the lie is just too easy to tell!

[Nicki19]

Hi slgsue, thank you for your reply. I am still claiming i've been to scared to ring them up to now.

 

I wouldn't be claiming as a couple as we wouldn't qualify due to joint income, but that's the main reason i haven't ever declared him, our relationship is off as much as it is on, it is only down to the fact we cannot afford to sell the house the situation is how it is, hope that makes sense.....h'es currently off at his dads again at the moment, he can't cope with debts etc so he goes off an stays with his dad. I so wish i had the money to sell the house, i could then close this chapter of my life with him and move on, i certainly don't miss him when he's not here, so that says everything really.

 

Do you think i will have to prove previous years, they only mention 2012-13 on the letter, they want evidence from a list which is asking for bank statements, mortgage statement, council tax the date they have asked for is 1st April 2012 to March 2013, do this mean that they are only checking this time period, or will they delve further?

 

I will contact them to purely cancel the claim, an if necessary i will then contact them again, at least once i cancel the claim it's not another day of them thinking i am deceiving them.

[slgsue]

Hi Nicki, I have pm'd you.

[debthelp1]

hi nikki,just an update,went to see cab on thurs,lady was very helpful,obviously said i shudnt have done it but she had literally had loads of cases like ours lately,agreed with me that a letter was the way to go admitting what id done,that i knew it was wrong and was sorry,she said all they would do when they got my letter,was to write back,with what id been over paid and asking me to ring them to organise repayment,she said not to worry ( easier said than done ) but they wouldnt prosecute or charge me,they would just want repayment,i feel alot better after seeing her so ..........ive done it,sent letter special delivery yesterday,they shud have got it by 1pm today so just gotta spend afew nailbiting days/weeks depending how long it takes,hope this helps,you should go see them,i no i felt alot better after my meeting,

[atjjj]

any news yet ?

[Nicki19]

hi nikki,just an update,went to see cab on thurs,lady was very helpful,obviously said i shudnt have done it but she had literally had loads of cases like ours lately,agreed with me that a letter was the way to go admitting what id done,that i knew it was wrong and was sorry,she said all they would do when they got my letter,was to write back,with what id been over paid and asking me to ring them to organise repayment,she said not to worry ( easier said than done ) but they wouldnt prosecute or charge me,they would just want repayment,i feel alot better after seeing her so ..........ive done it,sent letter special delivery yesterday,they shud have got it by 1pm today so just gotta spend afew nailbiting days/weeks depending how long it takes,hope this helps,you should go see them,i no i felt alot better after my meeting,

 

Thanks for your reply, glad it's a weight off for you, i've still not phoned them, i sat in a queue on Friday for 35 mins on my lunch break and still didn't get through, i need to ring before the end of the week to cancel the claim, i still don't know what i am going to say apart from i am cancelling my claim....never usually this bad when making decisions just frightened of saying the wrong thing or them asking something unexpected and catching me out!! Well done though for dealing with it, i know the days are running out so i'll keep you posted!