Hi caly1967 will TC look at the years you don't mention in April, and then try and prosecute you for it.

HI, I know it's easily said, but try not to worry too much. I would be very surprised if you were prosecuted tbh, as there is no material breach (it's not like you have extra money you wouldn't have had if you'd told them). I mean, I suppose they like to be informed and what have you. Maybe the letter is a standard one that is also sent to people not declaring a partner, in cases where there is a material gain to be had. What does the letter actually say regarding prosecution? Does it just say 'may be'.

Hi, I have heard similar stories on here before:http://www.consumeractiongroup.co.uk/forum/showthread.php?340142-Stopping-my-Working-Tax-Credit...-please-help!It seems they are looking into low earners work activities to check they are legit. However, everyone knows you can't guarantee that you'll earn NMW or above when you're self employed.I hope you get it sorted out soon for some peace of mind. As your business is online, I imagine there's a lot of activity on the computer you can use to show your activity - which is fortunate. I suppose it's worse if you are a novelist or a artist - as difficult to prove you are working.Have you considered getting help from your doctor for your anxiety? I think it makes the world of difference if you can just get a good nights sleep - I'm stating the obvious here, but it just makes something like this easier to deal with.

Hi I think you are very wise to disclose the information rather than let them discover it. Mistakes happen, and you're behaving honourably about it. If they decide to charge a penalty - it should be reduced. Here is a section in the manual which explains how they have a different 'compliance strategy' when a claimant discloses an error voluntarily (and unprompted): http://www.hmrc.gov.uk/manuals/ccmmanual/CCM2220.htm They have 5 years from the end of the tax year to which a error relates to open up that tax year and change it. So, I suppose they might discover it themselves by data matching. CAB are good at these things - and they have a number to call direct - perhaps they could liase for you if you are nervous about it. Good luck - I imagine they will just want the money back. Please could you post how it turns out. Hope you're worries will be over soon.

I hope you feel better soon. Try not to be too hard on yourself. In terms of the phone call they say never happened - you could request a subject access request, and they should send you a cd of all phone calls with the tax credit office. I suppose you could try and find a record of phone history - but know that's not easy when it's so long ago. Have you read the civil investigation and criminal investigation policy on HMRC website: http://www.hmrc.gov.uk/taxcredits/things-go-wrong/complaints-appeals/fraud.htm There are some very knowledgeable people on here, who go out of there way to help people so I hope someone will come along soon for you. Have you tried the CAB - they can be good, and usually have direct number to a supervisor. You could just get them to ask a question in principle anonymously - 'will I be prosecuted if I go back on my story now' for example. Get them to give answers to a hypothetical case. As I said, don't beat yourself up about it too much - people make mistakes. I can understand why someone would panic during a telephone call and just go into denial mode. I've read on this forum sometimes that the tax credit office staff can be quite understanding sometimes. Anyway, you clearly regret it now, and I've just read the info from the link above and it seems that it goes in your favour if you co operate. I really wish I could tell you exactly what to do to sort it out It's true that tax credit fraud is prosecuted less than Dwp/housing benefit fraud though - at least this is in your favour.

Does anyone know if class 2 national insurance contributions (those which you pay when self employed) count towards paying your stamp, so you can claim old age pension? I'm aware that this is part of what national insurance pays for - but I just want to make sure that 'class 2' does entitle you to this (i.e. pension and other benefits) Thanks in advance for any help

What form of tax credits do they currently claim? Do you have siblings they are claiming for? Or do they receive working tax credit? If they are not currently getting anything from them, then that is a bit odd and probably a mix up.

Hi shadow2007uk, Just wondered, did you ask them directly whether or not they will look into previous years? xx

Ps - you could try posting this question on the benefits/dwp section - there may be someone to help you there

Hi britishred. DWP usually look to prosecute people when the overpayment is over £2000 - and yours is £800. I think have can do it for lower if they want though. Have they been in touch with you yet?

Oh I'm really happy for you

Hi, Did you manage to get in touch with them today?

I'm not sure how normal that is, maybe they always put that at the end the letter..... and as you were already going to do - probably ringing them to ask is the best thing. I suppose at least they just mention it at the end, rather than sending a letter that only mentions criminal proceedings. Maybe when you ring you could ask what the time limit is for bringing about prosecution. Otherwise, how are you going to have any peace of mind ever if they leave things at this? For Housing benefit and JSA fraud the time limit for prosecution is 1 year after offence, or within 3 months of sufficient evidence coming to light. However, tax credits don't go by this law, so they will have there own rule (don't know what it is though). It's horrible leaving you in limbo like that. I hope it's just a badly worded letter and that there's no reason for you to worry. Sorry I can't be of any help.

What does the letter actually say... does it say it 'might' lead to penalty or prosecution? Is that the core of the letter? or is it a general letter that mentions penalty/prosecution at the end of it (if that makes sense). Have you ever made a mistake with tax credits before?

Don't mention it! It's a huge post: http://www.netmums.com/coffeehouse/house-garden-194/money-finance-entitlements-267/290860-tax-credits-review-team-letter-39.html But you'll have hundreds of similar stories to read through if you're interested. It's unclear whether the single investigation in 2013 will be for current claims at that time - or previous ones.