I lied to HMRC about working :(

[susanawan]

Ok so first of all I'm not proud of what I've done but I really need help.

 

Last year march I was getting income support and other benefits because I'm a single parent and I have a 5 yr old daughter. I was keen to get out of benefits and start working so I got a job as a trainee beauty therapist. It was not apprenticeship but train while you work so I was given 600 pounds a month as salary and I was working 42 hours a week. After about 2-3 months I had to leave the job but I didn't notify HMRC that I stopped working. I was scared that they would stop paying me working tax credits and child tax credits. I thought I would go back to benefits until I got another job but My employer ( who was giving me 600 p/m) never gave me any pay slips or even p60 That you are meant to get after yo stop working or p 45 or any document. So I was stuck with not applying for benefits and not telling hmrc about stopping work. Now Last month I called HMRC and told them that I have just stopped working ( koz I was done with being scared that they would find out, But now I'm scared that they will still find out . They said ok and the changes will take place in 28 days. Now I'm sooooooo scared that they will find out That i havent worked since 10 months. There must be a system for them to find out right?? Though there was no paper work but my employer took my N.I number before I started working so I believe Im going to be in trouble soon. I also sent HMRC my tax form stating I was working the same. Please don't judge me and just tell me what should I do. I havent heard anythin from HMRC since I told them that I've stopped working. Nothing about an investigation or anything bad.

What should I do now? Will they definitely find out that I wasn't working? Or should I just stay quiet and let the matter die as they know I'm not working anymore. Or should I just confess and may be they will b lenient that way

Please help me. Thank you so much

[susanawan]

please help

[Desperate Daniella]

Hi susanawan, and welcome to CAG!

 

Please rest assured we are not judgmental.

 

I'm going to try to get you some help from people who can probably advise you rather better than I can, so hang on, and you'll get advice soon.

 

DD

[susanawan]

Thank you so much I am in so much trouble. I can feel it. though I haven't even received any letter no anything fishy yet

[Desperate Daniella]

I've sent a couple of messages, but the people I want to help you aren't online right now. I'm sure they will respond as soon as they can.

 

It's not for a very long period of time, so I don't think anything awful will happen. There are threads on here where people have been claiming all sorts of benefits/received large overpayments, and the worse I've seen happen is that they have to pay something back, generally in their own time at a reasonable rate. Please don't worry that they'll take any action against you. They are in the business of getting overpayments back and going after people who have been making huge fraudulent claims, and you haven't done that.

 

The girls on here are very good in these situations, and you will get good advice on what to do.

 

DD

[susanawan]

thnk u so much DD. Fingers crossed and waiting desperately for people to reply and tell me should I lay low or confess even before they find out

[Desperate Daniella]

I'm bumping this for you. People come on all the time, so hang in there.

[susanawan]

[Desperate Daniella]

Please hang on. Sometimes the right people just aren't around on a particular day.

 

I personally think you will have to phone them and tell them because it looks better if you do, but I'd like some other opinions on how to do it.

 

If you read this, you'll see that the outcome was okay:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?391474-I-lied-to-HMRC-about-working-(&p=4233936#post4233936

 

Your situation isn't the same I know, but there were no penalties or charges, just some money to pay back.

[honeybee13]

Hello there, answering DD's SOS.

 

It's not really my field, but from seeing threads on the forum my view would be to own up before they find you, it has to go in your favour. If you can see the CAB they can help, they've seen this before.

 

My best, HB

[Desperate Daniella]

I think speaking to CAB is a very good idea. During the time you were getting the WTC if you hadn't been getting that you would surely have been entitled to income support again, so they would have been paying that instead. Therefore I can't see that you could have actually got that much more money.

 

Like HB this isn't my area of expertise.

 

I think it is absolutely great that you want to get off benefits, and I hope you get a good job offer very soon.

 

DDxx

[scotgal68]

Susan my advice is to hang tight and and see what happens next. You will receive a renewal notice within the next few weeks. You will have to sign it to confirm last years derails are correct and renew for this year. You would put your income as nil and then wait until they contact you about an overpayment. Now if you did put in an income HMRC can access PAYE systems which tells them how much tax you've paid on your earnings.

What are you doing for money now? xx

[Desperate Daniella]

Scotgal really knows much more than I do, so I would follow her advice.

[jadeybags]

They'll want to see proof of earnings for the last year. Like a P60. It won't just go away, no. If they don't see them, they'll hit you with an over payment for the whole year anyway. But don't panic, I haven't ever heard of someone being prosecuted for tax credit fraud.

[susanawan]

first of all thnx everyone for your reply

 

Up till now My income was wtc ctc and child support. But now If they stop it I'll have to go on benefits again. I'm thinking I should do what scot said. Just wait and then say that my income was nil in the year. Should I put that I was getting 400 pounds child support in thr form or not? Thank you

[Desperate Daniella]

Wait until she comes on later.

 

I'm glad you are getting some advice now.

 

DDx

[Desperate Daniella]

Did you get enough training to set up on your own as a beauty therapist?

[susanawan]

Hey Dd

 

No I didn't get enough training but after I left that job I started college and got my qualification.

[Desperate Daniella]

Then set up on your own as a mobile beauty therapist. Get some cheap cards printed and also email everyone you can possibly think of, asking them to forward on your email and details to everyone they know. If you have a friend who is good on computers get them to build you a website on wix or one of the other build-your-own-website sites. Give out cards at your daughter's school. Offer a free facial to anyone who recommends five friends who have one. See if you can tie in with a mobile hairdresser in your area and agree to recommend each other. There are all sorts of things you can do to promote your business.

 

Then you will be working and can claim WTC and CTC, etc., and CT benefit, etc.

[susanawan]

DD that is my plan now because I am qualified enough to start working on my own. I am really hoping to get this WTC slip up sorted so I can get back on track

[Desperate Daniella]

I would try and get on with that as soon as possible. I think you have to be working 30+ hours a week for WTC, but you can include time spent promoting your business, etc., as it is all work. You just need to get some customers and start billing some people.

[jadeybags]

Being a single parent you can work 24 hours self employed, in fact you can probably stil work 16 hours, & you don't have to be making any profit for now. I work about 40 hours a week self employed, my profits are down as 100 per week but I know a lady with one child in the same line of work that is down for 20 hours a week & zero profit. (she obviously spends a lot on spare materials because I know she gets about the same as me in sales lol)

Just call HMRC, register self employed, let tax credits know, they'll ask how many hours & roughly what you THINK you'll earn each week, say a fiver if you want to say something. Then you're on your way. Obviously in time you'll need to be able to show you are actually working, but they don't expect you to be making profit straight away.

Universal credit will change everything for the self employed, but that's not something I can worry about at the moment. I think we have a couple of years yet..