Tax Credit Fraud

[backofbeyond]

Hi Zaira - have you received an "investigation" letter or have you just decided to come clean? A solicitor, although you will get an hour free will be costly and I don't think really necessary at this point. Having read a lot of other posts on this matter it appears that HMRC prefer to go take money from payments as opposed to prosecuting people so I wouldn't panic as yet. You could always go and visit the CAB for some free advice.

 

If I were you I would write to them (make sure it goes recorded delivery), writing to them will ensure you tell them everything you need to without being interrupted or thrown off track by the call handler. Writing to them will be classed as "full disclosure" and will go in your favour. In your letter I would also make it clear your reasons (i.e debts, family troubles) and make it clear how you know it was wrong and that you are remorseful.

 

How much do you roughly estimate that you owe and over what period have you been claiming it?

[Zaira]

Hi am not in investigation yet hmm I have until the 15 th august 2 send the contract 2011/2011 but I can't coz I don't have!( ,I have been claiming since 2005 £600.00 a monthly I want 2 cum clean but am very scared .It's lot if money I do work full time and and I can pay up 2 £300.00 monthly .

 

Ive been extremely stupid and I know deserve everything thats coming to me but Im hoping someone can ease my worry as I cant carry on like this.

I am a single mother of one child *13 years old.

So stupidly I hve been claming childcare costs since July 2006 and I have now received a letter from HMRC saying they have selected my claim for review and they would like me to send in details of my childcare but only from April 2010 - April 2011. They have asked for any official contract with my Chilcare Provider and any invoices or receipts showing actual payments i have made.Of course I dont have any of this as I havnt been using the money for childcare.*

Oh I am so very frightened and dont know where to turn or what to do. And I never had from the provisioner years *i did use my son old childminder *registration pin number but he only stayed with her for a few weeks in 2006. I have until the 15th August to send all papers.I decided that I have to tell all *true from 2006 because they can investigate the back years,if i dont *send the childcare details from 2010/2011.I have been claiming since 2006 £600.00 monthly childcare payments . It's a lot of money that I dont have form 2 be given all back in one go.

 

I just keep envisiging going to prison and my child being taken away form me which is more that I can bear to think about. I know I have been so stupid and I feel sick to my stomach to think I have done this to my family.

 

Although I am so petrified though half of me is so relieved that this has come to an end now as I have been so terrified to come clean or even to amend the childcare costs incase It brought my case to the forefront to be investigated.*

 

 

I have literaly lived in fear of the postman waiting for this invesigation to happen. Please can someone give me some advice as to what you think will happen to me. I am so petrified that I am going to prison. Do you think they will just make me repay it back or do you think they will prosecute me and go to prison or any prosecution .I will lose my job my career if they prosecute me am so so scared I feel sorry for my son and scared for him

 

Im making myself ill with worry but I knon Ive brought this all on myself. Any advice would be appreciated.*

 

Thank You.

[Zaira]

Sorry I said 2005 but it's actualy sinve July 2006 I have bn claiming and send some of the money 2 my family 2 help them and I kept some for me and my son

[Zaira]

im no expert on tax credits or childcare claims and costs i do claim tax credits but not childcare but what i will say is ive seen pleanty of people posting about claiming childcare when they no longer need it (and personally know of people who have done it as well) there must be so many people over the country and although im not saying its ok cos everyone does it as its not ok, i think if they had to send everyone to jail it would have to be a pretty big jail! best thing i would do is write a letter send it recorded admitting everything, explain why and how sorry you are and you would really like to get the money paid back to them in installments say how scared you are etc and im sure it will be ok they will work out your overpayment and sort it out. I feel really bad for people when i read they are scared of loosing there kids and going to jail, we have all done things to make ends meet with our kids (i didnt pay my electricity bill this month so i could get my daughters school uniform). I hope it all turns out ok for you all and you can stop worrying about it xxxx

Thank u so much Claire for your support!I did very wrong I no...but am ready 2 cum clean and pay every single penny ,but am scared of jail and I will loose my career for ever if I go 2 jail...xxx

[backofbeyond]

You need to make sure you respond by the 15th August as if you fail they will contact the childminder they have on record (if they haven't already). It is far better for you to own up and give "full disclosure" than them find out through their investigations.

 

You say that you have received £600 per month, was that solely your childcare element or was that you tax credits / working tax credits also?

 

The tax credit system has made it so easy for normal, everyday people to defraud them and I think their new systems are here to combat that hence the reason for the extra checks and the renewals taking so much longer.

[Zaira]

Only for childcare??(

[Zaira]

I want 2 cum clean b4 they start a criminal investigation?God help me and

all of us dat r da same situation! Xx

[backofbeyond]

They won't start a criminal investigation - please stop panicing (easier said then done I know). So you estimate you owe approx £37,000? Compose a letter advising you know what you have done and how wrong you've been - this is your opportunity to disclose all information before they find out. This will go in your favor. They aren't interested in imprisoning people - just getting their money back.

 

You aren't alone Zaira an you aren't the first and I'm sure not the last. The system has made it too easy especially when everyone is struggling for money.

 

Hugs x

[Zaira]

Thanx for your advise as soon I see my lawyer tomorrow I will update everything !Tank you again:)

[scaredtodeath]

I'm sure you'll be fine, apparently you are allowed to steal off tax credits and face no consequences other than repayment

[backofbeyond]

I'm sure you'll be fine, apparently you are allowed to steal off tax credits and face no consequences other than repayment

 

Do I detect a hint of sarcasm? Zaira has come on here for advice and support; not judgement.

[scaredtodeath]

I'm not judging, just stating the facts as I see them, I'm in no position to judge but yeah it sticks in my craw when I get prosecuted for owing £3k when there are figures like 30k plus being mentioned geez

[backofbeyond]

I'm sorry to hear that - let me guess DWP? They don't mess around do they?!

 

I think HMRC have just left themselves wide open for this kind of crime from Joe Public and it appears the new government are cracking down on it hence the further checks they are carrying out this year.

[Jbabes89]

Hi, I just wanted some advice as I think Tax Credits suspect me of Fraud. Please bare with me as it's quite a complex long winded situation...

 

I was sending both my children to nursery and was receiving approx £200 p.w in childcare child tax. I stopped working in December 2010 (with no prior notice). I didn't report this straight away as my children had to attend nursery at full cost for a further 4 weeks (4 weeks notice is required when terminating) and my mother is the M.D of the company I worked for and was trying to convince me to return in another area of the company. Everything was up in the air but as soon as it was clear I would not return to work I knew I had to inform Tax Credits (approx 6 weeks or so later).

 

Around this time there were several other changes of circumstance, my partner became entitled to DLA and we were therefore entitled to a disability element, he remained working but there was changes to his hours and income and we also moved. As soon as we had moved and been given his DLA I wrote a letter clearly marked "change of circumstance" and sent it to a Preston address. Over the next few weeks there was a change in our payments, they dropped considerably but did stay quite high. I assumed this was the childcare having stopped but the disability element boosting an otherwise normal C.T & W.T claim. We did not receive a new award notice.

 

In usual circumstances I would have chased for an award notice as I know the onus is on us to check but there was a lot going on for us as a family. I was being treated for depression and anxiety, my partner had suffered further severe fits and had to have an urgent C.T scan etc, there was ill health to immediate family members both sides and we had recently moved to a new area (all of which can be proven). I assumed the figures were right and plodded on until I received a Provisional Award last week with reduced figures and stating that I was working full time.

 

Called tax credits who said this was because I had failed to reply to a review about my childcare costs (letter not received) so the reduction was due to my childcare having stopped. I was honest and said I had no idea I was getting childcare payments and that I hadn't worked since Dec. I explained all of the above and asked what would happen now to correct the situation, I was told to wait until I receive my new award which would explain the over-payment but the tone of the gentleman was very much suspicious of everything I said.

 

My payments have since stopped (apparently I didn't renew but I thought I had done with said gentleman). I've now been told having given all the exact figures etc again that this will be sorted ASAP. In the meantime we are living from £33 C.B as my partner who is self employed has no certainty of work until September.

 

I've also been told that changes of circumstance are not accepted in writing so my letter will not have been acted on (could have replied and told me that), that it's coincidence my weekly payments dropped at the same time as the changes were submitted (no further explanation given) and strangely some of the changes outlined in my letter have been acted on but not others (?). I am now noting details of every call and names as I'm sure they have ballsed up big time.

 

My question is how long can they stop my money for, especially if they do think I've committed fraud? And secondly what is likely to happen to me? One lady sincerely apologized about the situation but others have taken a real tone and it's making me unable to function. I would never ever knowingly steal from anyone, my Dad is a P.C and I would never risk being with my children for such a small gain. Because of this we have actually been underpaid in the Working Tax element of our claim and lost out on some Housing & Council Tax Benefit which cannot be backdated. We also now have potentially a big debt hanging over us.

[backofbeyond]

You need to start your own thread and then you will receive specific advice.

 

I would however like to point out that they DO accept change of circumstances in writing and they give the address on their website.

 

I have never heard of anyone having their payments stopped due to non renewal but I do know u have to have renewed by 31st july.

[Jbabes89]

Thanks Backofbeyond. I pointed out to the lady I spoke to that the reason I marked "change of circumstance" on the envelope is because I had read to do so and got the Preston address from their info.

 

Also with stopped payments, I have missed renewal date (31st July) in my first year of claiming (ages ago). My payments did not stop until following October and then restarted a week later once I had phoned. This has made me even more sure this is because they are suspicious of me, I put this to them but was told I should have renewed by July 31st as is "widely advertised" and that having not done so this is why my payments have stopped. I mentioned that I had renewed with the gentleman I spoke to prior and was told I had not and it was "my responsibility" this conversation was with the same lady who told me you had to ring regarding changes of circumstance or it would not be actioned. The next lady was much more helpful and apologized several time for all that has happened.

[backofbeyond]

It seems very complex. I am no tax credits expert but if it was me I think I would write fully explaining your current situation & the dates of your changes I.e. Childcare, work, income, benefits. I would also explain the date that you rang and that you believed you had renewed over the phone.

 

I know letter is the longest way BUT you get to put exactly what you want in black and white as opposed to stumbling and forgetting things on the phone. Make sure any correspondance is sent recorded delivery.

[cp1978]

Hi new to this what was the outcome of your situation?

[j1990]

Hi I am new to this and I have a problem. I can't sleep properly, feel sick at the thought that tax credits won't believe me basically I moved out of my partners when we split up into a house where I am basically lodging with my daughter. My 'landlord' if you want is a friend of mine that I knew and he was really my best hope of moving out. I took this opportunity in march 2011. I rang tax credits and gave them my new address but they never asked if anyone else was living there other than a partner. We are now in december and me and my friend have started to grow close and were maybe thinking of starting a relationship. I am so scared that tax credits will think I have been lying to them when if we do start a relationship and I add him on to my claim. Cos they will be able to use electoral rolls to see that he's been there right?? I just can't think straight ! Please someone give me advice

[backofbeyond]

J1990, I think it would be beneficial for you to start your own thread - that way you can receive advice specific to your query. Words of advice I would give you though is not to panic. You haven't had any letters from them advising you that they want information or are reviewing your case have you?

 

I am no tax credit expert but having been "reviewed" and I had overclaimed all I would say is it wasn't as bad as I thought. All those sleepless nights weren't worth it! Keep a record of dates etc and just call them to update your situation. I wouldn't go into details when you do just tell them the facts - that you now have a partner and would like to make a joint claim.

 

Hope this helps but please start a new thread and you will receive advice from people who are more in the know than me x

[honeybee13]

I see j1990 has started a new thread now. Thank you both.

 

My best, HB