savings problem

almostemptynest

I am a bit worried that I may be in trouble with the tax credit people. I had savings in an account in the Isle of Man which I never declared and now the bank is closing and is sending me a cheque which has to be deposited in my account. I no longer get tax credits and have paid retention tax on the savings over the last 5 years or so.. The problem is that I never declared it in any of the forms I filled in over the years - it was rainy day money put away and never touched since the initial deposit. Has anybody any ideas what will happen now ?

Vader123

You could be prosecuted :

http://menmedia.co.uk/accringtonobserver/news/s/349002_benefit_fraud_mum_failed_to_declare_savings

Or made to pay it back.

Ironically you only needed to declare the income off the savings (ie interest) but you still have to declare it.

Vader

almostemptynest

So any ideas about what I should do next ? Feel sick to my stomach about all this.

Witchfinder_General

The obvious question is, are your savings (in your offshore savings account) over £8K but below £16K ?

Vader123

almostemptynest wrote: »

So any ideas about what I should do next ? Feel sick to my stomach about all this.

I think you know what you need to do.

Ring them up and declare it.

Vader

Indie_Kid

Witchfinder_General wrote: »

The obvious question is, are your savings (in your offshore savings account) over £8K but below £16K ?

For tax credits, it's different - is the taxable interest (no ISAs, etc.) £300 or more per year?

alwaysonthego_2

Op, Sh is correct you only need to declare any interest of over £300 on savings and if it is in a tax free account you don't need to decare them at all, would this apply to you?

almostemptynest

The initial deposit in 1999 was about 11k in a fixed rate deposit account. The interest was rolled over every year and the sum on deposit now has increased to about 16.5 k with the interest being approx 570. I know it wa stupid not declaring it but as a single mum it was my emergency - roof falls in - insurance policy. I am really panicked now - I am very law abiding and hate the feeling that a sword is hanging over me. Any advice gratefully received - by the way I no longer get tax credit as my kids are too old.

alwaysonthego_2

You should have declared £270 which would had made very little difference to what you was entitled to.

Witchfinder_General

almostemptynest wrote: »

I am very law abiding

Now THAT's an Oxymoron!

almostemptynest

Thanks for that - so what should I do now ? Should I ring up tax credit people or HNRC - would rather act now myself rather than wait for cheque to arrive and face nasty letters. Will I be prosecuted is my main fear r have to pay back all tax credit from 1999 ? I am in full time work but earn about 18k a year