Have i committed fraud re council tax, please help, panicking!!!!

shell7t8

Hi folks,
I hope someone can help...

I have worked part time for the last 10 years, never claimed any benefits other than some working tax credit (8 year old daughter).

2 years ago my partner was diagnosed with terminal cancer. We struggled for a year with 5 operations, hospital stays, gruelling chemotherapy and consultants appts. Finally in august of last year the pressure built up and i took a career break from work. I can take up to 5 years. Although i was not working or earning we were told by dwp that we were not allowed any benefits other than dla for my partner and carers alllowance for me. Things were tough but we had some savings and managed ok. In november our macmillan nurse told us although we may not be entitled to income support we should get council tax benefit and we submitted an application. After submitting a letter from my work confirming i wasnt earning anything, benefit was granted and we didnt have to pay any more council tax.

In june we were struggling financially and although couldnt physically go out to work we wanted to do something so we set up our own company which we limited to negate any financial risk, my partner did this to protect my daughter and i incase the inevitable happened to him and we werre left alone. Weve not been taking anything from the business but our accountant told us that we should "pay" outselves our taxable allowance as this was what we could earn from our business tax free. I was worried about "paying" ourselves this and when renewing my tax credits award i told them we were both down as working even though most weeks we dont physically have the money as such. Today we had a letter from the council saying that since we advised them in november that i was on a career break theyve not heard anything from us (why would they if im career break for 5 years) and that they have reason to believe i have restarted my old job or started a new job. I am assuming that the tax credits people fed this info to them.

Im not worried at all about not being entitled to council tax benefit anymore, if earning this money means we arent entitled then fair enough but im worried that they will think ive committed some kind of fraud and that ill go to prison!!!!! Would this happen in these circumstances? We have not had housing benefit or income support only council tax benefit and only since last november.

Could anyone offer any advice?

In the letter it says our benefit is suspended until we provide information relating to my job (no mention of partners job), provide a p45, employment contract, wage slips, 4 months bank statements etc etc. it says at the bottom, if we no longer want to proceed with the claim to contact them but if we do that surely that will look a bit suspicious!!!

Id be really grateful for any advice

Shell

[Deleted User]

you need to be totally upfront with them as you have been above
and no ones going to prison

Beetlemama

shell7t8 wrote: »

In june we were struggling financially....Weve not been taking anything from the business....even though most weeks we dont physically have the money as such

I'm not sure I see why you started a business that doesn't make anything and doesn't contribute to your household income if the point of starting it was because you didn't have enough money?

Provide bank statements to the council and your accountants books showing what actually comes in from the business, if it really isn't anything much you'll probably still qualify. They've suspended you to prompt a response, nothing gets folks jumping like cutting off their money, that's the reason they do it like that. If you can show them you aren't making anything they'll just de-suspend you.

Don't forget to pay the ctax while your waiting, the law says you have to make payments even if you are waiting for a benefit decision. Thought I'd best come back and add that

shell7t8

Hi,

Thanks for your replies.

We started the business to give us something to focus on other than cancer and to make us feel more part of the working world we were part of all of our lives. Our accountant said we should not take anything from the business other than our taxable allowance. I rang the tax credit people and told them that our anticipated earnings would be our taxable allowance because if the business earns enough for us to take it at year end i didnt want to end up having an overpayment from them that needed to be paid back and thought it was better to tell them what the potential earnings would be.

I assume that they told the council about this which prompted them to send the letter. Ive heard people on here say theyve had letters saying they have to go for an interview, mine doesnt say thatvit just says if we want to continue with our claim to send them info about my "new job" or if we dont want to continue to let them know.

If i ring them and tell them we dont want to continue based on us anticipating that we will earn something at some point will that be enough or will we still need to "prove" we havnt already been earning money from our business?

I dont understand and just want to do what is right with minimum stress to my partner.

Shell

amyloofoo

shell7t8 wrote: »

Hi,

Thanks for your replies.

We started the business to give us something to focus on other than cancer and to make us feel more part of the working world we were part of all of our lives. Our accountant said we should not take anything from the business other than our taxable allowance. I rang the tax credit people and told them that our anticipated earnings would be our taxable allowance because if the business earns enough for us to take it at year end i didnt want to end up having an overpayment from them that needed to be paid back and thought it was better to tell them what the potential earnings would be.

I assume that they told the council about this which prompted them to send the letter. Ive heard people on here say theyve had letters saying they have to go for an interview, mine doesnt say thatvit just says if we want to continue with our claim to send them info about my "new job" or if we dont want to continue to let them know.

If i ring them and tell them we dont want to continue based on us anticipating that we will earn something at some point will that be enough or will we still need to "prove" we havnt already been earning money from our business?

I dont understand and just want to do what is right with minimum stress to my partner.

Shell

If all you're taking from the business is your taxable allowance then surely you'd still be entitled to CTB? I think you just need to be open with the council about what you've done, what you've earned from it and your reasons for starting the business. You've mentioned you have an accountant so hopefully they should be able to help. They're not deliberately trying to catch you out by sending this letter; they're trying to establish that you're receiving (and continue to receive) benefits you're entitled to. It sounds as though you would continue to be entitled to this, so just provide the information they're asking for and let them sort it. If you're worried about the stress this would cause to your OH then maybe your accountant would agree to liaise with them on your behalf?

over_flo

Unfortunately ,I think you should also have told the carers allowance people as well.
They ask to know about any income and if you earn above £95 pw you cannot clain CA any more.
It's very unfair - if you earn slightly above the threshold ,you lose the lot .

zexbox

If you are earning less than £6400 a year I worked it out too be then you are entitled to full CTB over that the more you earn the more reduced it becomes..
So take £100 a week from it if you make enough you are still entitled too free CTB or if your profits are less than that then no worries if your profits are higher than that, buy something for your business and get your profits down to that level..

ioscorpio

All benefit agencies want to know about changes in your circumstances. Is it your husband's business or a joint business?