To be investigated for tax credit fraud

chesky369

"Not understanding the tax credit system is not a crime"

For a start, ignorance of the law is no excuse. Secondly, every year, the OP will have received a Notice of Benefits from HMRC - usually around April - informing her what she will be paid in the coming year and why. The notice clearly requires you to inform them if there is anything different or any change in your circumstances. Not doing so actually IS fraud.

kingfisherblue

You say that if you are sent to prison, CTC will not get anything - they might not get anything whilst you are inside, but the debt will be waiting for you when you get out. You will also have the added problem of a criminal record, making it more difficult to get work.

In my area there have been other cases (council tax, disability, etc) and there have been court cases. In each of these, the person committing the fraud had had to pay back every penny. Some have also been imprisoned (and for lesser amounts). I don't know whether they admitted it though, so IMHO, admitting it was the correct thing to do. Offering to pay it back should also be in your favour, but as you say, it will take a long time because of the high amount. It doesn't mean that you will avoid prison though.

You need to take a long, hard look at your finances and see if you can cut down anywhere. Offer a percentage of your income - if you were an absent parent with arrears (on CSA2) you would have to pay 40% to cover regular maintenance and arrears. Can you pay back this much each month?

Can you sell your house and move into a smaller and cheaper property? Do you have any equity?

sophie563

thank you for your help

we are in shared ownership and have no money in the house we have a 100% mortgage

thank you we are really scared now did not think we could go to jail surely they are better of receiving money now and each month rather than send us to jail with no job to come back to and have to put us in acomodation

misty_blue_2

cannot give any advice, and not judging you either but you ought to get legal advice ASAP, as for going to court ect, who knows, some people have for a lot less than you have claimed, some dont, its not something anyone can say for sure.
you obviously knew you were not entitled to this money and it is a large amount you have claimed, get legal advice then at least you know where you stand.

sophie563

thnak you misty blue the problem arose when my husband was out of work we recieved this money and as soon as he found work we continued to claim to pay debts the problem is continuing with claim
with the size of the debt i suppose they will want to make an example of us
does anyone know how long this process will take and can they freeze our bank accounts

Robbie27

Hi Hun,

Im no expert but Im pretty sure they cannot freeze bank accounts, they will stop your tax credit payments and you will have to produce evidence of your husbands earnings for the last 4 years to enable them to calculate your overpayment.

You must be really worried and I am not going to judge you as what is done is done, you have held your hands up and admitted everything and offered to pay it all back, Im not sure if they would prosecute you but seek advice from C.A.B or a solicitor as soon as you can.

I hope it works out for you xxx

sophie563

thanks robbie

we apreciate your support, at the time it better to pay debt collectors than be honest with tax credit we now know this was wrong,

The tax office sent a letter stating they were starting an investigation and needed info by 4th of Jan

We have come clean the same day admitted to everything also sent all documents and will cooperate 100%

Not sure if we should use our bank or take money out or even send them post dated cheques we still do not know if they will charge us on fraud under civil investigation or Criminal investigation i have read they like to deal with these themselves under civelif possible but the amount owing may mean its a criminal caseand we are certainly going to help

Kimitatsu

Sophie

No judgement but you know that it was wrong and have admitted as such.

No one here can give you legal advice on the situation, and so I am going to suggest that you seek the help of a solicitor and close this thread before there is any backlash.

IMO you have done all you can and you now need to make efforts to pay it back whilst getting legal advice.