Quandry what to do please

[rjtcgt]

Hi All

Advice please if possible.

 

 

My 3 Children who are all adults and I have a number of properties approx £9,000 a year income each ,

we pay tax via HMRC etc.

 

 

The problem we have is that when they got into relationships and now have children the oldest being 3 years old they started to claim WTC /Child tax credits.

 

They asked me if they should put down the income from the properties

I thought it was the same as child benefit and just told them no ,

However I now know this to be incorrect.

 

 

We want to put the situation right so can we just put the income on the next submission when they claim and see if they question it ?

 

or what would the best thing to do be please if the above is not suffice.

[unclebulgaria67]

Yes should be declared as income from the relevant date and they will work out what tax credit have to be paid back.

 

They could just declare the next time they have to make a submission and it may not be questioned as to how long they have received the income. There are huge numbers of people claiming tax credits and making submissions. They would have to be unlucky to be questioned as to how long they have had this extra income. I think they just key the data into their systems and that is it.

[rjtcgt]

Hi thanks for the reply,

do you think it will make any difference because there are 3 submissions that will go to the same office?

[caro]

And if it is picked up and there is an investigation it could be questioned why they didn't declare it when the error was discovered. Deliberately hiding the income could be seen as fraud and lead to prosecution. Is it worth the risk?

 

I don't understand why you thought the income was the same as child benefit.

[rjtcgt]

Hi I just assumed it took the place of child benefit and I know my lack of knowledge is no excuse , but want now to explore how best to correct this when I realised I've told them to declare it

Edited June 21, 2015 by rjtcgt

[caro]

Ah I get you. Well it's a genuine mistake and is put right, apart from repaying it, I don't think it should be a problem.

[rjtcgt]

No It will be repayed if it can be all I want to know is the best way to resolve the situation , it was a genuine error and will be re payed I only want to know the best way to get it resolved

[blondebubbles]

Tell them to call and explain how much for each tax year.

 

So for example if they made a claim to tax credits in the 2012/13 tax year they should report the figures for 2011/12 to date.

 

Do not just submit it for the current return because if they do checks it would appear they have tried to hide it for previous years.

 

Tax credits are constantly doing compliance checks now and it would be easy for them to check the self assessment records for themselves.

 

Best that it is reported by them.

[slick132]

Absolutely, 'fess up !!

 

Report the issue to them before they find out and treat it in a far more serious manner.

 

[rjtcgt]

Told them , in letters with explanation and dates at how much should have been entered for all years and that we are willing to pay in full with the penalties etc.

[slick132]

Hi Rjt,

 

I would not have offered to pay penalties. If they want them, let them say so.

 

Anyway, it's done now so let us know how it goes.