Possible DWP / HMRC overpayment

worried_of_wilts

Hi everyone! Long time lurker, first time poster here. I've gained a lot from this site so took the plunge in registering in the hope I can give something back You seem like a good lot so maybe someone would be kind enough to help me with the pickle I'm in.

After a close relative died, I recieved an amount of inheritance this time last year which is small in the grand scale of things but only just pushes me over the savings limit for income support and housing and council tax benefit. I found it very hard to get on top of things around the time of their death, especially as myself and my child are on our own and disabled, and although I managed to get on top of things enough to inform HMRC in the usual child tax credit renewal back in April and it didn't seem to change anything, I still haven't gotten around to letting the DWP know (looks around for blushing smilie!)

I've tried to find information about what will happen when I declare this money so late and all that seems to come up are stories about being prosecuted for fraud I've no intention of keeping quiet about it and will be offering to come to a repayment arrangement immediately as I'm an honest person who has never been in trouble with the law in my whole life but at the same time I'd really like to know what to expect.

Is there someone out there who has been in this situation or who can tell me how to go about this? I would be so grateful as I'd really like to draw a line under this and get on with our lives.

Incyder

So you have known for a year that you have more money in savings than would be allowed to claim income support, HB and CTB.

To carry on claiming, if you knew this and admit it, maybe seen as fraud, probably, and perhaps you will end up in court and having to pay back all of those benefits for the past year.

If you were just over the limit when you recieved the payment, you could have declared it and your benefits would have stopped until you had spent some of the money on living costs until such time that you fell below the limit again, then you could have started a new claim.

This could all get very messy. Particularly now the HMRC knows, as this info may well somehow get into the hands of the others even though you have not told them yet.

I guess your money is sat in an account somewhere, where it could be found through an investigation, if you were unlucky.

It's a tough one.

worried_of_wilts

Ah a fellow Wilts poster Thanks for the reply, even though of course it's not what I'd liked to have heard. I would've hoped that being honest and saving them a job would go in my favour but it seems not.

Do you happen to know anything about what any deadline might've been to do this, by any chance? It doesn't seem to be on any of the leaflets I've ever been given when claiming benefits.

Sorry for all the questions. I've never been in this much trouble before - I feel sick

dmg24

Incyder, we do not advocate fraud on MSE, and that is what saying nothing is. Please edit your post.

OP, give the DWP a call tomorrow. Don't make excuses, just say that you are aware that you have been overpaid. They will ask for copies of bank statements for the relevant period. Were you over the lower limit (£6,000) or the higher limit (£16,000)?

Incyder

worried_of_wilts wrote: »

Do you happen to know anything about what any deadline might've been to do this, by any chance?

No I don't. But when you have a 'change of circumstances' it will be written somewhere on your original forms that you must inform them as soon as you become aware of the change.
Purely a guess, but within a month would seem reasonable.

worried_of_wilts

Hi dmg24 Just to clarify: I will be declaring my change of circumstances tomorrow whatever the consequences.

The money was paid in two parts of just over £2000 and £3000, each which I spent (sensibly!) so although my balance was never more than £3000 at any one time, my concern is that, especially as it came in on top of existing savings of about £1000, it would have taken me over the lower limit to give me an total income of just over the lower limit of £6000 over one year IYSWIM.

It's been difficult for me to understand exactly what the rules are about whether it's treated as savings or income as despite asking the JobCentre I've always received very vague replies.

Thanks again for all your help.

dmg24

The money would be treated as capital. If you were only just over £6,000 the overpayment is not going to be massive. It would have resulted in a weekly deduction of a few pounds, and would not affect your Tax Credits claim at all (unless you were receiving interest of over £300 per year?). The chances of the DWP prosecuting over what is likely to be a few hundred pounds in total are very low. However you may receive a caution or an administrative penalty, which again will not be a massive amount.

Try not to worry. Give them a call tomorrow. It is not going to be as bad as you thought. It would be very different if you had been over the £16,000 limit!

worried_of_wilts

Over £300 interest per year - I wish

It's been a hard 18 months both caring for the relative with a terminal disease and trying to come to terms with their death so thank you so much for this reassurance. I shall sleep a lot easier tonight and be straight on it in the morning.

Cheers again

ramsas

dmg24 wrote: »

incyder, we do not advocate fraud on mse, and that is what saying nothing is. Please edit your post.

Op, give the dwp a call tomorrow. Don't make excuses, just say that you are aware that you have been overpaid. They will ask for copies of bank statements for the relevant period. Were you over the lower limit (£6,000) or the higher limit (£16,000)?

who are you to tell poster to edit their post?....you have no authority whatsoever to order them to do so!!!

dmg24

ramsas wrote: »

who are you to tell poster to edit their post?....you have no authority whatsoever to order them to do so!!!

I was not telling them to do so, it was simply a suggestion so as not to inconvenience the Abuse Team. It also means that the helpful information in the post gets to stay, whereas Abuse will delete the whole thing. Win win situation!

Morglin

worried_of_wilts wrote: »

Hi everyone! Long time lurker, first time poster here. I've gained a lot from this site so took the plunge in registering in the hope I can give something back You seem like a good lot so maybe someone would be kind enough to help me with the pickle I'm in.

After a close relative died, I recieved an amount of inheritance this time last year which is small in the grand scale of things but only just pushes me over the savings limit for income support and housing and council tax benefit. I found it very hard to get on top of things around the time of their death, especially as myself and my child are on our own and disabled, and although I managed to get on top of things enough to inform HMRC in the usual child tax credit renewal back in April and it didn't seem to change anything, I still haven't gotten around to letting the DWP know (looks around for blushing smilie!)

I've tried to find information about what will happen when I declare this money so late and all that seems to come up are stories about being prosecuted for fraud I've no intention of keeping quiet about it and will be offering to come to a repayment arrangement immediately as I'm an honest person who has never been in trouble with the law in my whole life but at the same time I'd really like to know what to expect.

Is there someone out there who has been in this situation or who can tell me how to go about this? I would be so grateful as I'd really like to draw a line under this and get on with our lives.

I would just go and tell them - it's highley unlikely that they will prosecute you - they can't keep up with dealing with those who never tell them/owe mega amounts.

But, you will have to pay back any overpayment - they will sort out an appropriate repayment amount per week, and deduct it from one of your benefits until it's paid back.

Savings ONLY affects means tested benefits, so it won't affect anything like DLA.

Lin