Tax credit hell

Aruffell

Little bit of background, me and my partner live together with her 3 children.

My partner works (officially) 10 hours a week.

Working tax credits thinks that she works 16 hours a week to qualify even though at the end of the year it is calculated by how much is earnt, and not by how many hours. Which works out for how much she does earn.

2 of the children are registered at a private nursery which working tax credits pay for even though 1 of them stays at home with us during the day and the other one is 3 years old so he gets 3 hours for free because of the government scheme.

So we haven't paid the nursery since christmas as it is all free, but working tax credits still pay us the money.

We've had a form from HM Revenue and customs doing a tax credits inquiry to see if they have paid the right amount.

We know what we have done is wrong because the hours dont add up but it does add up over the year for the amount earnt.

What happens now when they will know that we was claiming child care costs even though the children dont pay to go to nursery and one of the children has never gone?

Without this money, we would be around £800 in the red EVERY month and the money is to support 5 people in the household. We don't go on holidays etc... We use the money to LIVE.

Thanks for any advice guys.

Andy

Auzelia

so your partner only works 10 hours (contracted) yet has told Tax credits she is working 16 hours, I assume you also work as you said that you get childcare paid.
Unless you partner is defrauding the system a bit more by claiming as a single parent.
Now you say you receive Childcare money for 2 children. 1 of whom stays at home and doesnt attend the nursery and the other who gets the 12.5/15 hours a week free.

hmmm....

are you being serious?

hanny83_2

Hmm, my only advice is to come clean ASAP. If you don't do that and they find out maybe a year or two down the line it is gonna be one massive debt you owe HMRC.

Perhaps you could post your SOA on the Oldstyle board where they can advise you on where/how to cut back.

Auzelia

I just read some of your old posts.
If your claiming JSA then you shouldnt have been claiming for Childcare at all.
By this I am assuming that it is a single parents claim your partner has going.
Even though the kids are not yours, your name and details should still be on the form as you are both living together as a couple.

Best bet is to call them up and declare all this before the overpayments get even higher.

[Deleted User]

Could I have your name, house number and postcode in a PM please?

Aruffell

I don't claim JSA, they won't give me any money because my partner earns too much.

Andy

tigtag02

Aruffell wrote: »

I don't claim JSA, they won't give me any money because my partner earns too much.

Andy

You are deliberately defrauding the system yes?

Aruffell

Just looked at my partners wage slips and most of them are on average of 16 hours a week as she does overtime nearly every night so according to HMRC tax credits site, we are entitled to £12k incorporating of child tax credits and working tax credits.

Andy

Aruffell

tigtag02 wrote: »

You are deliberately defrauding the system yes?

How? They will give me 89p some weeks and 0p other times because they look at my partners wage slips of a whopping £65 a week.

Andy

alwaysonthego_2

So you are not working then?

You are committing fraud, 16 hours is the required amount of hours that need to be worked in order to be eligible for WTC. You also should not be getting the childcare element. If you do not come clean you are likely to be prosecuted.

[Deleted User]

You are committing fraud. You will be worse off when you are caught and made to pay everything back.

Dependant on the amount you may well be prosecuted which may mean a custodial sentence - if you are both prosecuted this may affect your children.

http://nds.coi.gov.uk/Content/Detail.asp?ReleaseID=399071&NewsAreaID=2
TCO/HMRC are attempting to take a zero tolerance apprtoach to try to deter fraudsters.

Own up NOW! Owning up now will normally avoid prosecution.

If you have that much in the way of outgoings you may need to look at that and ways of trying to reduce the amount as opposed to trying to justify fraud.