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Tax credit compliance letter - scared

edited 30 November -1 at 12:00AM in Tax credits & benefits for work
2 replies 32.8K views
jerseygirl74jerseygirl74 Forumite
11 posts
edited 30 November -1 at 12:00AM in Tax credits & benefits for work
Hi I'm beside myself with worry at the moment. I received a letter on friday saying my single claim for last year was being investigated as they had something to say my husband was living there. Here is the story:

My husband and I decided to separate in 2007. We was affected by the floods that year and was living in a caravan. I applied for tax credit as my husband was going to be moving out, we told our daughter and she was devastated, I think we underestimated how she would take it. To cut a long story short as there was a lot of things going on with the flood claims, builders etc and my husband couldn't afford to pay for somewhere to live and support us as we have a lot of loan, credit card debt etc he decided to stay and sleep in the spare room and I assumed that as we were not "together" as a couple that I was entitled to claim as it was a temporary measure until we were able to put the house on the market, our house was unsaleable and clear some of the debts . As far as my daughter and others were concerned we had decided against it. I cancelled my claim in august this year as we had decided he was moving back into the bedroom. After receiving this letter I have looked into things and I dont think I was entitled to claim whilst he was living in the house and money was still joint as it was easier for bills etc. I am so scared as I havent claimed fraudulently I misunderstood the single claim criteria. I have never been in trouble before and i'm terrified of being prosecuted. I thought I was doing what was best for my daughter by keeping things as normal as possible, maybe I was naive or stupid. I cant prove we were apart and if I wasnt entitled to the claim then I'm happy to pay it back but am scared I will get arrested for fraud :o( please help its such a mess, If i am charged with fraud I will lose my job


  • Hi , you dont seem to be getting any responses to you query on the CAB board. Have you thought about posting it again on the benefis and tax credits board? Im not saying you will be guarenteed a response on there but its worth a try.
    The loopy one has gone :j
  • CAB_Birmingham_representativeCAB_Birmingham_representative Organisation Representatives - Private Messages may not be monitored
    89 posts
    Thank you for your query.. We must start by apologising for the delay in responding to your message.
    As you rightly stated all changes in circumstances must be reported to the benefit services, including the fact that you and your husband remained as a household when after you had notified them of the contrary.
    During the investigation the benefit authority may:- At the moment, you are can only wait for the result of the investigation which should outline the HMRC’S action for the future. We can not pre determine what the outcome of the investigation is going to be, however, the HMRC could ask for you to repay any overpayments that was made to you in this period and or look at prosecuting you for benefit fraud.
    Benefit fraud occurs where a claimant has acted knowingly or dishonestly in some way in her/his dealings with a benefit authority.

    If a fraud investigation reveals evidence of benefit fraud, a decision will then be made about whether or not to prosecute . Benefit fraud is a criminal offence and it is therefore very important that a client obtains legal advice from a criminal law specialist as soon as possible if s/he has to attend a fraud interview.
    Hope this helps
    Official CAB Representative
    I am an official representative of CAB. MSE has given permission for me to post in response to questions on the CAB Board. You can see my name on the companies with permission to post list. If you believe I’ve broken any rules please report my post to [email protected] as usual"
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