I owe tax credits 30K !

Jules

haddit wrote: »

Any helpful advice gratefully received....I have received a letter from a compliance officer that states i owe Tax credits 30K and the debt recovery team will contact me to arrange payment in due course. They say I will not receive a penalty fee on this occasion! Does this mean I won't be prosecuted too?

I am recently bankrupt following the failure of my business. I neglected to tell them about changes in my circumstance including changing childcare provider and a new partner moving in. This goes back to 2005.

What arrangement am I likely to be offered to pay back such a sum ? Obviously do not have that kind of money and god knows how they arrived at that figure.........:eek:

V.worried

I would suggest contacting your local Citizens Advice Bureau or similar advice agency who may be able to negotiate with Tax Credits on your behalf. They can also check that you are liable for the full amount. Try not to worry. You've admitted the mistake and are making plans to repay. Hope things work out for you.

Jules

[Deleted User]

haddit wrote: »

Thanks Alwayson the go for your constructive comments.
Yes i appreciate I am lucky not to be prosecuted. I have made a dreadful judgment in neglecting my affairs and failing to keep them informed. However I have not set out to defraud anyone. I suppose I was just focussed on getting by, what with the business failing. My partner moving in was a little complicated as he was a house husband for 2 years and not contributing whilst I focussed on getting the business off the ground.I legitemately changed to another child care provider and the costs were the same as the previous one on Tax Credits records. I genuinely thought what difference can a name of a provider make, so never mentioned it.

If I serve as a warning to others , so be it - what I did was wrong. So as for the unhelpful posts, you really don't touch the sides with regards to your narrow minded judgements - the reality of my situation is the biggest punishment. And I shall stand up and be counted - be assured of that.

I am sorry but you will have completed several renewals which asks you to confirm your details are correct. In completing the renewal you were commiting fraud.

I understand you are admitting to your guilt now but you are also trying to justify it by giving an account of your 'complicated' circumstances.

[STRIKE]Also, you should not have been eligible for help towards childcare if your partner was unemployed (unless he was incapacitated). You may not have received any help towards the childcare but you would still have received a bit extra in your tax credits as the income threshold is higher in a joint claim.
[/STRIKE] Ignore this part of my response, I made an mistake. The claim (minus childcare costs) would have been the same.

My advice - speak to the overpayment recovery department asap to arrange the recovery. You will need to complete an income and expenditure list with them to calculate how much you should pay back.

If you have not already done so, make a fresh joint claim for tax credits as you will still be able to do so - providing you still meet the qualifying criteria.

enemes

haddit wrote: »

Any helpful advice gratefully received....
V.worried

Hey ... I too was in a similar position a few years ago.
Unknown to me at the time my ex was cooking the books, and eventually it came back to haunt us ... with a demand for £32k overpayment.

I was gobsmacked, how could she 'over claim' that amount ... in both our names? I was unaware of the scam at the time, and it only came to light after we split up:T

The Inland revenue chased me for it for a while but gave up soon afterwards. I don't know why, but I made a number of (minimal) payments over a period of about 16 months, and then inexplicably they stopped taking off me. Obviously, I didn't phone them to ask ... so I seem to have got off Scot Free ... and am collecting TC's off them weekly again!!

bunny999

Yet another great example of why tax credits should be abolished.

dogcat_2

Haddit has come on here for advice...we have all made mistakes surely.. The poster knows they have got to pay the money back...theres no need for nasty comments...

bunny999

Fraud isn't a mistake it's a crime.

In an over populated country it is crazy to have a benefits system that encourages people to have children that they can't afford to support and have no intention of supporting.

hotblu

"I have not set out to defraud anyone..."
You must have completed 3 Annual Declerations so where not neglecting your affairs enough to continue claiming. Sorry, but it's true. I know so many people who are struggling, but they don't go around stealing public funds.

fermi

alwaysonthego wrote: »

Not true as the op will have income and HMRC debts are not written off in bankrupsy.

Debts owed on Tax Credits can be written off in bankruptcy, but only where:

a) You were notified of the debt and intended recovery before the bankruptcy order was made.
b) The debt is not the result of fraud.

So, the OP seems to be out of luck on those counts.

MrsE_2

bunny999 wrote: »

Yet another great example of why tax credits should be abolished.

Do they not check anything?

Do they just hand out the money because people "say" they are entitled to it?:rolleyes:

kerry13238

do you have a compliance officer?di you admit it straight away or did they not tell you they were investigating you? if you admited your mistake straight away maybe they wont press charges?