Housing/Council Tax Benefit overpayment

Yorkshirewhite

Hoping someone on here can help me.

Around April time I was asked to meet with a benefit fraud investigation officer regarding some apparent extra income I had been recieving.

I play in a band on a weekend and we play at various pubs,
but the money we earn from the gigs over the year simply covers my petrol costs
and the small amount of new gear I have to buy.

it's a hobby.

I was unable to attend the meeting due to work and contacted them to let them know.

I was asked to provide details of all my gigs including what I earned and my costs.

At the same time I was going through a rather difficult break up with my partner at the time,
and moving out of home away from her and my 3 children which caused a lot of distress for me and
to be frank, I completely forgot about sending in my income and costs.

Totally my own fault and I'm not excusing myself.

This morning my ex partner received a letter saying that we have been overpaid council tax of about £3000 over the last 7 years.

She also received her fortnightly benefit today which was £100 down on what she usually gets
so I am assuming they are deducting £50 from her.

Am I too late to sort this mess out?

We haven't received a letter from housing yet but I am positive it is on its way, and a £50 a week over payment over 7 years is a hell of a lot of money.

Is there anything I can do to correct my mistake or am I too late? I realise it is totally my fault, both in that I should have realised to mention to them when I first started, and also for forgetting to hand my details in to them.

Can I just add a couple of points as I did not make it clear. The break up has been rather messy due to me struggling to find somewhere else to live and spending 3 months on the sofa. I moved into my own place at the beginning of last week and our housing benefit hasn't been changed over yet by them. They have been informed. I'm assuming the money they took off my partners benefit from today's payment is what they believe I earn extra over the 2 weeks between payments, without taking into consideration out goings. Also I realised I should have informed the benefit office several years ago but as I didn't actually earn any money, I stupidly didn't think to.

Housing_Benefit_Officer

You can appeal against the overpayment within one month of the letter being received.

They can use the offsetting rules where they can offset your actual income against the income used to create the overpayment.

If you are receiving payment for work done (i.e. playing in a band) then it is work not a hobby - especially if you play every weekend.

You will need to show what your income has been (gross income) and you actual outgoings (i.e. petrol receipts and expenses for equipment etc).

As you haven't met with a Fraud Investigator then they have been unable to interview you under caution and unable to take any legal action against you so it would appear they have just assumed an income and removed benefit.

You will need a break down of what income they have assumed for you.

Most importantly speak to someone like the Citizens Advice Bureau.

The Council Tax Benefit overpayment is £3,000 - what is the Housing Benefit overpayment?

And prepare paperwork in case Mr Tax Man comes a knocking as HMRC may have been informed of your undeclared work as well - hence speaking to CAB.

Yorkshirewhite

We haven't actually received a letter from the housing benefit people yet, but the benefit my partner received on Saturday, which was usually around £200 every fortnight, was only £100. Hense me assuming they are taking the £50 a week off her benefit. Looking at the letters she received from council tax it appears to be a 5 year period over the last 7 (I worked full time for 2 years and we did not claim for them 2 years. 5 years of £50 a week is a hell of a lot of money to repay when I didn't actually make a penny doing it!

Housing_Benefit_Officer

Yorkshirewhite wrote: »

...I didn't actually make a penny doing it!

But they don't know that. And they look as though they have removed benefit by assuming income because they never heard from you.

You need to get advice from CAB on what you need to do next to resolve this and what the possible implications are by contacting the Council.

Yorkshirewhite

I understand that yes. Totally my fault. Just massively worried that they will take further legal action for a stupid stupid mistake by me. Are you saying I perhaps shouldn't visit the housing benefit office tomorrow with my income and out goings for the past year. At the time we first heard about this a few months ago I put together a spreadsheet of every gig, the amount I earned, the location of the gig, the millaege and also the petrol I used getting to gigs using the government recommended amount. I can't remember off the top of my head what the figure was now but it did show that I earned nothing at the end of the year.

Housing_Benefit_Officer

Yorkshirewhite wrote: »

I understand that yes. Totally my fault. Just massively worried that they will take further legal action for a stupid stupid mistake by me. Are you saying I perhaps shouldn't visit the housing benefit office tomorrow with my income and out goings for the past year. At the time we first heard about this a few months ago I put together a spreadsheet of every gig, the amount I earned, the location of the gig, the millaege and also the petrol I used getting to gigs using the government recommended amount. I can't remember off the top of my head what the figure was now but it did show that I earned nothing at the end of the year.

This is why probably a good idea to speak to someone like CAB first.

You can only be interviewed under caution if they first notify you in advance so you can ensure you can be legally represented first.

Apart from the Council Tax bill has a detailed letter been sent explaining the overpayment yet?

Yorkshirewhite

No nothing. Just 3 council bills stating the overpayments and how much we need to get back. Could the council take this further with perhaps legal action? I absolutely sick with worry about this. Can't believe I was so stupid!

Yorkshirewhite

And they only came yesterday.

Housing_Benefit_Officer

Yorkshirewhite wrote: »

No nothing. Just 3 council bills stating the overpayments and how much we need to get back. Could the council take this further with perhaps legal action? I absolutely sick with worry about this. Can't believe I was so stupid!

There should be further letters and notifications on there way explaining what the overpayment is and how it occurred and giving appeal rights and what other action they may or may not take.

No idea what they will do. They normally have a limit which below they won't prosecute although they could slap on an administrative penalty.

If it made no income then there could be no or little overpayment.

Yorkshirewhite

Well 5 years of £50 a week at £13000!!! Although for 3 and a half of them years we only actually gigged every other week....but I'm assuming that's for me to prove! £13000 sounds like a figure legal action will be taken to me! Hopefully I will get the chance to appeal and I can show them I earned nothing from doing it.

Housing_Benefit_Officer

Yorkshirewhite wrote: »

Well 5 years of £50 a week at £13000!!! Although for 3 and a half of them years we only actually gigged every other week....but I'm assuming that's for me to prove! £13000 sounds like a figure legal action will be taken to me! Hopefully I will get the chance to appeal and I can show them I earned nothing from doing it.

They have done this to try and prompt a reaction for the real figures to be provided.