Applying for council tax benifit but current account shows several 5 figure amounts

happenstance

Hi,

I'm applying for council tax benefit but current account shows several 5 figure amounts that were credited and debited immediately.

They were as I have just bought a house and borrowed money off family members and didn't withdraw my savings until after I completed as I wouldn't be able to put back in 8+ full years of ISA payments if I withdrew it and sale fell through.

Will this impact my council tax benefit claim?

thanks

rogerblack

Perhaps, for several reasons.
However - to get a clearer picture :

When did you get loaned the money.
Was there a legally binding agreement for what you would use it for.
Were you on any means-tested benefits at the time.

_All_ capital - that is everything you have that you could sell, or sell the rights to sell at a future date counts.
Not simply what's in your current account.
There are certain exemptions - for example - the value of a home that is lived in and personal posessions.

Where has the money for the ISAs gone - and how much is it.

If you have had over 6K-16K of non-exempt capital while claiming means-tested benefits - there will usually be an overpayment, and depending on the amount and circumstances this may not only mean you need to repay the benefit, but may face prosecution.

happenstance

I got the money loaned by an aunt in june who just had it sitting in a current account, it was over 16k.

No formal agreement in place.

The money was out of my possession 6 weeks before I applied for benefits. Council tax and js contributions.

Money from the isa s was about 40 and has been paid back to aunt in several installments in aug.

rogerblack

happenstance wrote: »

I got the money loaned by an aunt in june who just had it sitting in a current account, it was over 16k.

No formal agreement in place.

The money was out of my possession 6 weeks before I applied for benefits. Council tax and js contributions.

Money from the isa s was about 40 and has been paid back to aunt in several installments in aug.

You've paid about 40K to the aunt that was your savings, after borrowing 16K from her?

If you did this with the knowledge you'd be applying for benefits in the future - and not notifying them of these savings, then you are attempting to commit benefit fraud.

On the facts you've presented if I've understood them correctly, any application for means tested benefit will depend on why you gave away money in excess of what you were given that you did not legally have to.

If a significant reason (or they believe it to be) was to qualify for means tested benefit then you will be treated as if you still have the money you gave away, and hence not be entitled to any means tested benefits for some time. (CB JSA is not affected, but income based would be)

happenstance

rogerblack wrote: »

You've paid about 40K to the aunt that was your savings, after borrowing 16K from her?

If you did this with the knowledge you'd be applying for benefits in the future - and not notifying them of these savings, then you are attempting to commit benefit fraud.

On the facts you've presented if I've understood them correctly, any application for means tested benefit will depend on why you gave away money in excess of what you were given that you did not legally have to.

If a significant reason (or they believe it to be) was to qualify for means tested benefit then you will be treated as if you still have the money you gave away, and hence not be entitled to any means tested benefits for some time. (CB JSA is not affected, but income based would be)

Sorry my fault, was saying the amount i borrowed was greater than 16k. Borrowed over 40k and paid back 40k so far. The account numbers are all the same so if I go back several months you can see Aunts money coming in to my account and then as my ISAs are cashed the money is going back to the account it came from.

Did this knowing that times were challenging at my company and that my job is not secure.

Im only looking to claim CB JSA and housing tax reduction.

When you say some time, are we talking weeks / months? I just feel that I should get something back from the system after a decade of paying tax while I look for a new job.

Does this sound like attempted fraud?

Coraline

happenstance wrote: »

I just feel that I should get something back from the system after a decade of paying tax while I look for a new job.

Does this sound like attempted fraud?

It kind of does actually.

Paying taxes is not like paying into a piggy bank.

happenstance

Coraline wrote: »

It kind of does actually.

Paying taxes is not like paying into a piggy bank.

What part is fraud?

I dont have any money im hiding, I just paid back a family debt a month and a half before being sacked.

The 10 a week off my council tax would be good, as I dont have a job.

I see taxes as an insurance policy i've been paying, is that wrong?

Housing_Benefit_Officer

You will need to account for this money as it will be picked up during Data Matching in weeks, months or perhaps several years time.

You will need to demonstrate where this money came from and where it went. You need to do this at the beginning of your claim as it will save you having to attend an interview under caution for suspected fraud in the future.

If you Aunt can prove she gave you the money (bank statements) and you have proof she was loaning it to you then you shouldn't have any problems.

However if this is you money that you have accumulated over a number of years by saving an you hide it by 'giving' it to your Aunt then you will be treated as if you still own the capital.

happenstance

Housing_Benefit_Officer wrote: »

You will need to account for this money as it will be picked up during Data Matching in weeks, months or perhaps several years time.

You will need to demonstrate where this money came from and where it went. You need to do this at the beginning of your claim as it will save you having to attend an interview under caution for suspected fraud in the future.

If you Aunt can prove she gave you the money (bank statements) and you have proof she was loaning it to you then you shouldn't have any problems.

However if this is you money that you have accumulated over a number of years by saving an you hide it by 'giving' it to your Aunt then you will be treated as if you still own the capital.

I have all the bank statements but it seams like it isn't even worth the hassle to apply for it. Its only 10 pounds a week. Its annoying as I've always worked and should in a fair world get it.

HappyMJ

happenstance wrote: »

I have all the bank statements but it seams like it isn't even worth the hassle to apply for it. Its only 10 pounds a week. Its annoying as I've always worked and should in a fair world get it.

It is a fair world. You have the proof and will get CTB.

happenstance

HappyMJ wrote: »

It is a fair world. You have the proof and will get CTB.

Oh I know I can get it, but its already taken so much time and could get more complex. Seams like its a false economy trying to get my council tax reduced and should just spend my time looking for a job.