tax credit fraud - in such a mess.

terrified01

Hi, I am new to posting on here and absolutely terrified with the mess I have got myself into so please be gentle with me!

I don't know where to start treally. I split up from hubby last year for about 3-4 months and went to live at my Mum's with my 2 children. I made a single tax credit claim. Hubby and I were both going through bankruptcy and the pressures of this forced us apart. Once the financial strain was eased, we began to work on our marriage and I progressively started to stay more and more in my marital home. I cant really say there was an exact date for me moving bak permanently as it was just a gradual process but no later than early November.

Anyway, I know I should have ended my tax credit claim but just kept putting ot off for a week, then another and another always intending to ring up ending it as of early Novemvber. My hubby had started working 80 -90 hrs a week, I was working part time but have an autistic son so could not increase my work hours as childcare is a nighmare for him. We were just struggling by but at risk of losing our house. I sort of blocked it out of my mind really that I was still getting these tax credits that I should not have had and never ended the claim. I think basically I was scared the loss of income would mean we definately lost our home and did not want to end up on the same rocky road my marriage had went through a while back. (no excuse I know but that's what I stupidly did)

Anyway, few weeks back I got a compliance letter to say they are conducting an enquiry. I totally panicked and was physicaly ill for days. At first I thought I was going to have to make up some wonderful story to try and convince them we were living at same address but not as a couple but have not done that.

I made such a stupid mistake I just want to put things right. I have sent all info like bank staements etc back to tax credits as requested, however have told them the whole truth about whats gone on and the fact that I should have ended the claim last November but have stupidly spiralled myself into this situation.

I think I have been overpaid somewhere in the region of about £8000 which I know I will have to pay back and will do whatever is necessary to repay this.

My hubby thinks I have done the wrong thing by owning up but I just could not go on with this any more and in a strange way feel relieved the truth is finally out. However, I have got myself in such a sate. Hubby works away for 2 weeks at a time and I am at home with my 2 kids (aged 2 and 5). Every time the door goes I think it's going to be the police to arrest me and have myself convinced I am going to end up in prison with my kids ending up in care.

Maybe I have done the wrong thing owning up? I really thought this would be the best way to sort this mess out, arrange repayment of the money and avoid prosecution. I have never done anything like this at all, ever and have totally let myself down.

I am a trainee teacher and have worked so so hard to get where I am and would be devastated if this ruined the rest of my career and had implications for my young children. Looking back I still find it hard to believe I have done this but feel I have just trapped myself into a hurrendous situation.

I know I am going to have people replying saying it's my own fault and I deserve all thats coming to me - I have read some very sharp responses to other threads of the same nature but everyone is entitled to their opinion so I accept that. Yes I have had money I should not have had, but I have suffered from it and am as low as I could possibly be over this terrible situation I hav escalated myself into. Does anyone have any idea what action tax credits will likely take now or has anyone been in a similar situation?

Just properly checked my fugures and overpayment likely to be in the region on £5500 so not as much as i first though but still not good at all and equally as wrong I had this money.

thank you all

GlasweJen

stop panicking, the police will not turn up at your door to take you away. I'm not sure of the exact process, i'm sure someone will be able to help there but you need to work out how much you owe, get your paperwork in order and try to see how much you can pay back so when the time comes you know where you stand.

tom9980

terrified01 wrote: »

I made such a stupid mistake I just want to put things right. I have sent all info like bank staements etc back to tax credits as requested, however have told them the whole truth about whats gone on and the fact that I should have ended the claim last November but have stupidly spiralled myself into this situation.

If your being genuine and telling the truth then you wont have anything to worry about just keep providing them with any info they ask for and keep telling the truth 110% of the time. Lots of people are being over and underpaid tax credits the system is more than a bit messy so they are quite used to sorting the mess out. They will also understand the issues of debt/potential divorce and the pressure it can put on people.

You will not be arrested! most likely they will pay you less tax credits in the future so you can pay the money back, so it may be wise to rebudget because you will be having less tax credit income for awhile.

SuziQ

terrified you have absolutely done the right thing in telling the complete truth now. Your husband isn't looking at this clearly,and whilst you have done wrong,the fact you have capitulated immediately and cooperated fully will help as it saves the fraud officers some work. They won't come to your door-you may be called for interview and it's probably a good idea to get some advice from the CAB or a solicitor-however the fact you are admitting it and (to me anyhow) your explaination sort of makes sense may make this unnecessary.I know one of the regular posters on here used to work in the compliance dept and I'm sure will be along to advise you at some point. It's not worth making yourself ill over-you are no use nor ornament to your kiddies if you're ill!

kelloggs36

As you owned up, the most they can do is ask you to repay the money so don't worry! YOu won't have a criminal record.

viktory

Terrified, I have also seen some really sharp responses on here, but I would be surprised and very disappointed if there were any like that on this thread.

You have got yourself in a pickle but don't worry - as the other posters say, I am sure it can be sorted out.

Oldernotwiser

kelloggs36 wrote: »

As you owned up, the most they can do is ask you to repay the money so don't worry! YOu won't have a criminal record.

I'm sure you mean this kindly but the truth is that benefit fraud is a criminal offence and there is a large sum of money involved.

OP, you've done absolutely the right thing by owning up, and from now on you must be absolutely honest about this. Hopefully you'll be allowed to pay the money back and avoid prosecution as I believe that this often happens. I certainly don't think you need to worry about police knocking at the door.

Perhaps you'd feel more prepared if you saw a solicitor about this? The CAB will be able to put you in touch with firms that offer a free half an hour's advice with a solicitor, which may allay your worries. Good luck.

System

If you are still receiving payments on your single claim you need to contact TCO immediately (0845 300 3900) and end that claim as off November last year. You then have to make a new joint claim with your husband so that you at least have some tax credits coming in. That new claim can be backdated no more than 3 months.

When they cease your single claim there will undoubtably be an overpayment and you will be able to negotiate time to pay it back. I don't think TCO are in the business of prosecuting when they have someone who is willing to face up to their responsibilities and pay back overpaid monies.

terrified01

Thanks for all of your kind responses. I have ended the claim, I just ended it as of the day I rang up (in June) as I did not want to intefere too much with things and to avoid them thinking that by me ending it as of November, I believed I had rectified my mistake and that would be the end of it. I thought it was just best to stop any further payments and then let them deal with the previous overpayment from there.

Basically, things are in such a mess I do not want to confuse or damage anything further so feel the best thing I could have done was just to stop payments and then fully cooperate from here with regards to repayment and penalties etc.

I fully accept what I have done is terrible and their is no real excuse, I just hope they take into account that I have held my hands up at the very earliest stages of their enquiry and not tried to spin them a tale.

thanks again guys xxx

what a mess.

millymoomoo_2

Hi, I don't have any advice sorry, just wanted to say don't make yourself ill over this. The police will not be coming for you hun x

Take care

space_rider

Remember too that when they do try to take back the payments, if it will leave you without enough to live on then ring them and tell them so you can pay it back over a longer period.