Working Tax credit concern

[ysnp]

I think I have messed up on working tax credit and worried I will go to prison for stupidity.

 

My wife passed away and I was left with 3 young children (age 7 and under) to bring up including one who is disabled.

 

About 3 years later I decided to move to be nearer family as wasn't coping on my own (no family to support where I lived). I was a carer to my wife until she died and then working full time 37 hours after she passed away.

 

I then had to give up work again as my disabled childs health became worse.

 

I did tell HMRC I was working full time and then completely forgot (with everything going on with moving and fighting the new local authority for help for my child, new schools) to say my working hours had changed, although I have always updated my income correctly and when I saw the renewal pack yesterday with 37 hours on this year I phoned in and told the person I spoke to that I had not amended the hours for the whole year.

 

I do work part time now but not enough to be eligible for WTC. The lady, very rightly told me off on the phone saying I was negligent and this can be construed as fraud and was very clear in saying that I might need to be investigated.

 

I would think that the overpayment would be anywhere from £2k to £3.5k which is a heck of a lot of money. I am now worried they will think that I have deliberately defrauded them and will prosecute me.

 

I also think I was about £400 out on my other income which might add to them thinking I am dishonest. I haven't had anything further in the post but my nerves are on edge thinking a criminal investigation letter will appear on my doorstep.

 

I do find the whole tax credits difficult to get my head round. I said I would be happy to make payments and take full responsibility for my stupidity.

 

Please can you advise if you think this is clearly a criminal investigation or give any advice on how best to resolve this without it becoming a criminal case. Do I need a lawyer?

Edited May 16, 2015 by honeybee13
Paras.

[blondebubbles]

Are you working less than 16 hours?

 

Normally if you report something like this yourself then you would just be overpaid.

 

Penalties/prosecution etc normally only happen during a compliance check. Even then it isn't often. HMRC are more concerned with getting the money back.

[TheContinuum]

My immediate response is that far from being 'quite right' the response of the call-handler (and let's remember that's ALL these people are) was highly inappropriate... Clearly you are living in vey difficult circumstances. As she was so keen to cite negligence perhaps we could consider hers in placing your mental health and general well being at risk with such a stupid comment...

 

They would have to PROVE intent to defraud - which would be difficult and expensive and ultimately counter-productive. Can you imagine the headlines? - Slip of the mind in dire circumstances sends widower dad of disabled kid to jail?

 

You've reported the error... And are you SURE you weren't averaging over the 16 hours required of people with kids? If you reported your earnings correctly there would surely be little or no financial penalty? Just the 30-hour element...