Tax credits - fraud?

[windswept19]

Hi

 

Someone I know of is, I believe, claiming tax credits that they are not entitled to.

 

They have substantial income from various places including rental income and the sale of another of their property.

 

The child they are claiming for is with this individual half the week so 50/50 with the other parent, however they are claiming the child is with them 100% of the time. They refuse to share the money and ignore all requests to do so.

 

He is self employed and is known to the CMS for hiding his income, it took them two years to get arrears off him.

 

Any thoughts?

[honeybee13]

What do you want to do about this? One option is to report them but there could be consequences if they ever think it was you .

 

HB

[AndyOrch]

How do you know so much about this someones financial affairs ?

[tomtom256]

Hi

 

Someone I know of is, I believe, claiming tax credits that they are not entitled to.

 

They have substantial income from various places including rental income and the sale of another of their property.

 

The child they are claiming for is with this individual half the week so 50/50 with the other parent, however they are claiming the child is with them 100% of the time. They refuse to share the money and ignore all requests to do so.

 

He is self employed and is known to the CMS for hiding his income, it took them two years to get arrears off him.

 

Any thoughts?

 

Lets break this down, rental income could come under their self-employment and have no effect on tax credits. Capital from the sale of the property won't affect, only interest earned I think.

 

They must be in receipt of child benefit as well or else they wouldn't be able to claim tax credits.

 

Have you got or can the DWP obtain any hard evidence to prove this alleged fraud or is it just sour grapes?

[Ethel Street]

I've no idea whether what you describe is fraud but HMRC have an online fraud reporting site if you believe you should report it

 

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-excise-and-vat-fraud-reporting

 

The report can be made anonymously ('your details' is not a mandatory field).

[London1971]

IMO, I think you should not report this. Substantial income - substantial outgoings = nowt, you never know the full picture.

[windswept19]

Thanks for the replies. He's the ex of a close friend of mine. He makes her life a misery and lords it over her and refuses to give her a penny towards the child.

 

She is struggling financially and he keeps the full benefit entitlement and refuses to share even though he only has the child half the week.

 

I am lucky enough not to need to claim benefits and never have - I thought if someone earned good wage they wouldn't get tax credits?

[renegadeimp]

IMO, I think you should not report this. Substantial income - substantial outgoings = nowt, you never know the full picture.

 

Doesnt matter. Theyre still claiming.

 

- - - Updated - - -

OP, report it to the authorities and let them investigate

Edited January 4, 2019 by Mr.P
Remove OP's [old] user name.

[windswept19]

Thank you renegade.

 

I am tired hearing about people who are genuinely struggling and cannot get the help they need and then there's people of this who abuse the system.

[renegadeimp]

If in doubt, report it and it will be investigated.

[tomtom256]

Thanks for the replies. He's the ex of a close friend of mine. He makes her life a misery and lords it over her and refuses to give her a penny towards the child.

 

She is struggling financially and he keeps the full benefit entitlement and refuses to share even though he only has the child half the week.

 

I am lucky enough not to need to claim benefits and never have - I thought if someone earned good wage they wouldn't get tax credits?

 

So from this then it is sour grapes. If she claims child benefit then there is no way her ex can be claiming tax credits for the child, has she not made a claim to tax credits in her own name and/or challenged why she can't claim it?

 

Obtain the correct information and better advice can be given.

[Ethel Street]

 

Obtain the correct information and better advice can be given.

 

If you suspect fraud do not do this. HMRC give clear and specific advice on what you should NOT do if you suspect fraud

For your own safety you shouldn't

 

- try to find out more about the fraud

- let anyone know you're making a report

- encourage anyone to commit a crime so you can get more information

[tomtom256]

Not more info about the alleged fraud, more info on why the close friend isn't/can't claim tax credits i.e. is she just venting and this is sour grapes or has she allowed her ex to claim child benefit and tax credits.

 

There is more to it that isn't be said.

 

Besides in theory they have already let people know they are making a report, albeit on any anon forum!

[windswept19]

She had already tried to make a claim but has been told they can only pay it to one party - the ex - and the information they have received from him is what they believe even though he has been dishonest. They said their decision is final.

 

He has also managed to be awarded the child benefit and he won't half that with her either.

[AndyOrch]

She had already tried to make a claim but has been told they can only pay it to one party - the ex - and the information they have received from him is what they believe even though he has been dishonest. They said their decision is final.

 

He has also managed to be awarded the child benefit and he won't half that with her either.

 

The child they are claiming for is with this individual half the week so 50/50 with the other parent

 

Joint custody then. ?

 

Andy

[windswept19]

Yes they have joint custody. But he refuses to share the benefits - he claims he has the child full time when he doesn't but they take his word for it.

[AndyOrch]

Use to be based on number of nights slept at.....the greater got the child benefit and therefore entitled to to tax credits......not sure if its change now.

 

I know they dont split benefits though...never have,

[windswept19]

Yes that's right. They both have the child exactly the same number of nights. I'm not sure whether or not tax credits split claims, I'll get her to check - I think she assumed they would be like CHB and not split.

 

Thanks for your help

[tomtom256]

So based on this new information regarding child benefit being received by the ex then no fraud is being committed.

 

It's a civil matter between the two regarding who claims what benefit for the child. This scenario is quite common when couples split with 50/50 custody and nothing would be done via reporting it as fraud.

 

Is the 50/50 something sorted between them or via a court? If between them it may be worth seeing about sorting the custody/parental responsibility through the courts which would resolve the issue of who can claim which benefit for the child.

[London1971]

This is why it's dangerous to report things like this, the OP is only getting one side of the story here. It's best not to interfere in someone else's domestic issues.

[Will Goodfellow]

It doesn't make sense that if the mother is receiving child support through CMS for the children that he receives all of the child related benefits. If it's the case that he does receive all of the child related benefits, the mother should be paying him child support.

[windswept19]

Thanks for all the responses. It also turns out that he is making a single claim even though he lives with his new partner and has done so for months. Surely that cannot be right? Apparently as far as my friend knows the wife is very well off and ovbiously he is not declaring her income. Lavish holidays, fancy restaurants etc all the while he claims to be single.

[renegadeimp]

Report him and let hmrc deal with him

[tomtom256]

Thanks for all the responses. It also turns out that he is making a single claim even though he lives with his new partner and has done so for months. Surely that cannot be right? Apparently as far as my friend knows the wife is very well off and ovbiously he is not declaring her income. Lavish holidays, fancy restaurants etc all the while he claims to be single.

 

So he said she said and chinese whispers.

 

Do you know for sure any of this is true, if its bothering you that much report it and the DWP will look into it and investigate if there is sufficient evidence or will pass it to HMRC compliance team if no evidence.