Would you go to prison for hiding savings?

Jennifer555

If, whilst on a small amount of housing benefit, you had a few thousand pounds ISA (say under 8000) that you always meant to be a pension but knew the council wouldn't understand or believe that. And if you decided to tell them after 10 years because you were too scared to do it before, would they send you to prison?

If you could prove that you have never once made a withdrawal from this account are they likely to let you have it for its intended use.

maginot

Of course they would let you use it for your intended use, you can save as much as you want.

However if your question is I want to take taxpayers cash fraudulently rather than use my own money to live on. Then, yes you could face jail, although it is likely you will just get a criminal record and be made to pay the money back rather than jail.

Notmyrealname

Jennifer555 wrote: »

If you had a few thousand pounds ISA (say under 8000) that you always meant to be a pension but knew the council wouldn't understand or believe that. And if you decided to tell them after 10 years because you were too scared to do it before, would they send you to prison?

If you could prove that you have never once made a withdrawal from this account are they likely to let you have it for its intended use.

Well basically you've committed benefit fraud for 10 years so there's a high possibility. It would definitely go to court because there would be £10,000s in benefits you'd not have been entitled to which you would have been paid. When benefit fraud gets into the five figures, prison is usually the outcome.

The fact you haven't made a withdrawl is entirely irrelevant. You are expected to use some of that money to pay your way.

pmlindyloo

Your post is a bit confusing and the replies are a bit misleading.

First of all you must specify which benefits you are talking about as different benefits have different rules as regards treating capital.

Next you must tell us exactly how much in savings you are talking about. You say a few thousands and then 'under £8000'. How much is it? Was it the same amount all the time you were claiming benefits?

Then we can work out the possible overpayment (if any) that you may have.

SailorSam

I was on Jury Duty about 10yrs ago and one of the cases was benefit fraud, he went to jail. But from reading the papers more and more seem to be 'let off' with community service now. I've wondered if the Courts had been told to go easy 'cos the jails were so full.

marybelle01

The only thing that the council need to understand or believe (or find out) is that you have been lying to them about your savings. What you intended to use them for is not relevant. The fact you have them and lied about them is. The longer you lie about them for, the more it is going to look like - well it will look like exactly what it is, which is benefit fraud. So the decision you make is to own up and take the consequences, in the hope that they will believe that you "didn't know" you had to declare ISA's (or whatever excuse you make) knowing you will have to pay back what you have had; or you continue to lie and hope they don't find out, but when and if they do, they will undoubetdly throw whatever book they can at you because excuses will be much less believable.

Jennifer555

Just a small amount of housing benefit. Nothing else. I am trying so hard to get off housing benefit but difficult to do with a very low and variable income. The only reason I had that money in the first place is that I am someone who has never really cared about money/material things and didn't shop - literally hardly ever. Also anxiety disorders made it difficult. I thought at the time I could blow this on a car or put it away for my future and forget about it. I am a really honest person and so this has just started eating at me recently. There is a lot of judgment on here without knowing anything about the person.

Its just that pensions for self-employed are so hard to understand (and not trustworthy from what I understand) and if you really don't want to pay regularly into one it seems much more sensible to use an ISA to have a bit of cash for your future. Prison just seems so harsh and even a criminal record does. I'm almost 40 now and I would have to start again with nothing for my future.

Caz3121

If it was under £16k you would have still been entitled to housing benefit but the amount would have been reduced by £1 for every £250 over £6k.
So assuming between £7,750 and £8k you have an overpayment of £8 per week
If 10 years then that will be £4,160

Muttleythefrog

Jennifer555 wrote: »

Just a small amount of housing benefit. Nothing else. I am trying so hard to get off housing benefit but difficult to do with a very low and variable income. The only reason I had that money in the first place is that I am someone who has never really cared about money/material things and didn't shop - literally hardly ever. Also anxiety disorders made it difficult. I thought at the time I could blow this on a car or put it away for my future and forget about it. I am a really honest person and so this has just started eating at me recently. There is a lot of judgment on here without knowing anything about the person.

Its just that pensions for self-employed are so hard to understand (and not trustworthy from what I understand) and if you really don't want to pay regularly into one it seems much more sensible to use an ISA to have a bit of cash for your future. Prison just seems so harsh and even a criminal record does. I'm almost 40 now and I would have to start again with nothing for my future.

The likelihood of prison is something probably only those with experience of sentencing in this specific area would be able to advise on. As an outsider I would think prison unlikely but possible. This can't be doing your anxiety any good... it may be worth coming clean... giving full details of the undeclared savings over the time of your claiming... when you do that then you'll probably be able to calculate overpayments you've received... and therefore be in a position to determine the plausibility of repaying monies owed. You may be best advised to take legal advice from someone qualified in this area of law... this could possibly be resolved without any courts.

Anubis_2

Notmyrealname wrote: »

Well basically you've committed benefit fraud for 10 years so there's a high possibility. It would definitely go to court because there would be £10,000s in benefits you'd not have been entitled to which you would have been paid. When benefit fraud gets into the five figures, prison is usually the outcome.

The fact you haven't made a withdrawl is entirely irrelevant. You are expected to use some of that money to pay your way.

No, it wouldn't be tens of thousands in benefits - it's approx a max of £8 a week.

Jennifer555

Thanks Caz3121,
The only problem is that i had more in another account that I have already told them about recently. And this is another few thousand. It was so easy for me to save money as I stress I just didn't spend hardly any due to not caring about material things. Didn't even do it consciously.
Such a mess and is making me feel like s***. The man on the phone is so hard to talk to, a bit robotic. Benefit fraud is such a triggering label, I honestly never thought that was what I was doing. Just trying to be sensible due to the inconsistent nature of my work.
I don't want to go to prison or have a criminal record.