Tax Credits and HB, I always thought they were linked

doug3101

I have a bit of a problem. My wife got a new job after taking time out after we started a family, we telephoned the tax credit office as soon as she got a job and gave them all the relevant information.

A few days later we received a letter from our local HB office saying they had been notfied of changes in our circumstances and our benefit had been adjusted.

We have just had a letter saying that someone from the HB office is coming to our house as they have found a discrepancy and my wife is now panicking thinking she is going to jail!

I have always been under the assumption that all Gov departments 'knowledge share' so we thought they were aware of our change in circumstances.

Also (and maybe bigger fool us) we only read the front page of any letters they send us because the rest looks like gobbledygook.

Job was started in May and is only part time so is not a very highly paid job.

Are we in the Poo?

Any help would be great

allen35

Tax Credits and Housing Benefit aren't linked, you are responsible to inform the Local Authority of a change in your household income.

The gobbldy gook you didn't read was probably a reassessment of your claim due to a change in tax credits. It probably said if there are any changes to the info' we hold tell us immediately.

As the change only happened in May i wouldn't expect a big overpayment.

Be honest when you have your visit and hopefully it will only be classed as an overpayment.

nannytone_2

housing benefit are probably aware of your change in circumsrtances and that is why they have contacted you.

it is still your oblihation to inform then of changes and if you havent, it may lead to them thinking that there may be other thi n]ngs you havent informed them of....

bestpud

Have you actually read the rest of the letters now, to check the info is correct?

When you renew tax credits annually, you have to declare all the information on the form is correct. Same when housing benefit is renewed.

Are you saying you've never actually checked they have the correct information? If you haven't and something is incorrect, you are up the proverbial creek! I'd check them before the visit if I were you. If any info is incorrect, you can come back here and ask further questions.

Why is your wife worried about being sent to prison?

If you have messed up then it's better in the long run to come clean. Saying you don't read the letters won't work!

karenx

So the household was getting an extra income and you didn't think to tell housing benefit even though it's based on your household income??f

[Deleted User]

STOP

OP in your initial post you said "A few days later we received a letter from our local HB office saying they had been notfied of changes in our circumstances and our benefit had been adjusted."

From what you have said, if this is correct? It appears that they have told you that they know, a few days after you told tax credits. It's quite common they they are told, I don't know why but I have seen it before.

That letter you refer to, you must read it ASAP, it could allay your fears as it will confirm what and why it was changed.

You should never assume that they will know and you must either check or be ready to answer questions and pay back if need be.

Good Luck!

tomtom256

If there visiting you it will probably be a verification/intervention visit to reassess everything on your claim.

If they where looking at the fraud route with regards your wifes fears they would be inviting you to attend an interview under caution.

There are links available for LA to Tax Credits via ATLAS, however the onus is always on you as the claimant to notify the LA of a change in your award. Tax credit award letters/notes pack even state this if you read them.

GreyQueen

tomtom256 wrote: »

If there visiting you it will probably be a verification/intervention visit to reassess everything on your claim.

If they where looking at the fraud route with regards your wifes fears they would be inviting you to attend an interview under caution.

There are links available for LA to Tax Credits via ATLAS, however the onus is always on you as the claimant to notify the LA of a change in your award. Tax credit award letters/notes pack even state this if you read them.

This is correct, ATLAS has been sending info from Tax Credits directly into the LA's HB systems since summer 2011. And from DWP since spring 2012.

However, it isn't foolproof and it doesn't negate your legal responsibility (or you wife's responsibilty if she is the Claimant) to tell the LA of any changes in your circs.

It is likely that there will have been overpayments of HB/ CTB in which case there will be a recalculation and the HBOP will have to be paid back, ususally by reducing current entitlement if the claim is still in payment. Otherwise they'll invoice you. The CTB is paid into the CTAX account for the whole year as if the rates of the award won't be changing. If it was overpaid, it will be taken back from the account and a revised CTAX bill will be sent to you.

Any overpayments will be confirmed to you in writing and you will be given a month to request a statement of reasons, review or appeal if you don't understand or disagree with the decision. These rights will be explained to you in the overpayment letters.

I can't see how, on the strength of what you've shared, your wife could possibly be looking at prison so please don't panic.