Would you go to prison for hiding savings?

duchy

Jennifer555 wrote: »

Duchy, I don't know why but your post actually made me laugh a little bit despite my anguish about all this at the moment.

And no matter who tells me any different, the courts or you, its NOT savings its a pension. I know that and I am not ashamed of it hence my openess. It is just all the trigger around rules/regs and law that made me wonder about telling them about it but if any of them are anything like you I may think twice.

I'm glad you find it funny-I doubt you'll feel the same when the judge tells you the same. Either you're not very bright or in denial.

As your finances are already been investigated due to ANOTHER savings account you omitted to tell them about -you probably won't need to worry about telling them-They'll know anyway.

princessdon

Ok you know your ISA is not a pension - It is savings that you are using for your pensionable age - DWP distinguish between the two and so do you (or you wouldn't be asking this).

Also you are also being "investigated" - somehow I don't read your posts that this was voluntary - and now you are you WILL be discovered once they do a link on your name and NI number (needed for the ISA).

Way I read it you have 2 options

a) give them a call and say - I have a pension in an ISA - do I delcare this? They say Erm it's an ISA not a pension - you say innocently OMG I didn't know - because I was using it for my old age I thought was expempt etc etc.

They will then probably believe their was no intent to fraud - you came clean and they will work out a repayment plan.

or

b) You wait till they find out, risk them claiming this is fraud - possbily lose your job (and there will be NO benefits either or very reduced due to re-payment), possibly a criminal record and very slight - but maybe prison.


Sorry - it's a no brainer to me!

Own up and start paying the money back!

you are allowed to keep some of it for your "pensionable age" - or next month if you want - but not all.

Jennifer555

princessdon wrote: »

Also you are also being "investigated" - somehow I don't read your posts that this was voluntary - and now you are you WILL be discovered once they do a link on your name and NI number (needed for the ISA).


.

It was totally voluntary. I offered the information. The bank couldn't give me all the information from the past as the account was closed and transferred into another at one stage. So the council are trying to find out that part for themselves.

xylophone

Yes I know about stakeholders.

But not enough?
And presumably over the forty years or so you have to build a pension you might have managed to contribute a little more than £7000?
And, as I said before, contributing to a pension would have enabled you to keep your capital at a level that made claiming means tested benefits legal?

CKhalvashi

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.

You're looking at losing £8 a week on £8,000, so not the biggest amount.

You're looking at about £4,000 provided it's always been over the limit. I think your best option here would be to voluntarily pay the penalty by approaching the council.

In my experience, the matter is unlikely to go to court if you are the one to notice your 'error'

CK

princessdon

CKhalvashi wrote: »

You're looking at losing £8 a week on £8,000, so not the biggest amount.

You're looking at about £4,000 provided it's always been over the limit. I think your best option here would be to voluntarily pay the penalty by approaching the council.

In my experience, the matter is unlikely to go to court if you are the one to notice your 'error'

CK

But sometimes it was over £16K and so they had zero entitlement for that time. But I fully agree - they will calculate the back payments and it is much better to own to the "error"

Jake_t_2

Happychappy wrote: »

Hopefully YES

Here here totally agree

SandraScarlett

I think the problem lies in the fact that your original question is "would you go to prison for hiding savings?" and then when people have tried to answer this question, using your words, you've hotly denied that they are savings and said they are a pension!

xx

thistledome

If OP had the same £8k in a pension fund rather than an ISA then they wouldn't be committing fraud. An £8k pension fund would be useless and I can understand why the OP feels that it's unfair. No need for the nasty comments from a couple of posters. The country isn't on it's knees because of people like the OP and her few thousand quid in the "wrong" type of account.

If she had a few million hidden away I'd agree she deserves a jail sentence, but I think she is a victim of a badly thought out law. In a pension or in an ISA, £8k is not a great deal of money.

princessdon

thistledome wrote: »

If OP had the same £8k in a pension fund rather than an ISA then they wouldn't be committing fraud. An £8k pension fund would be useless and I can understand why the OP feels that it's unfair. No need for the nasty comments from a couple of posters. The country isn't on it's knees because of people like the OP and her few thousand quid in the "wrong" type of account.

If she had a few million hidden away I'd agree she deserves a jail sentence, but I think she is a victim of a badly thought out law. In a pension or in an ISA, £8k is not a great deal of money.

I disagree - OP has identified very clearly the difference. If it was a pension she/he CAN'T access it (till of an age). You can't use it to "dip in and out of" - therefore if you need it to pay your rent, you'd be stuffed as you can't get the money.

Their own words - their savings have fluctuated between over £16K to now 8K - they have dipped in them when they wanted to.

That is the reason for the difference - and that is why is itsn't the "wrong" type of account.

Because of the accessibility reason.