A cautionary tale regarding Tax credits.

georgiasdragons

Letter from concentrix will state what they are investigation

Childcare
Self employed income hours
Single award
Etc

They wouldn't just want bank statements so what is it they are investigating for my investigation they want bank statements but to prove my payments for childcare

georgiasdragons

If they want to look deeply into someone's finances surely that's wrong.
I mean they will see Regular maintenance payments sometimes cash sometimes transfers. They will also see that my dad transferred birthday money to me, friends do transfers if we're booking to odd day out together!
I don't see why we would have to explain in depth all this?

wiltsguy_2

georgiasdragons wrote: »

If they want to look deeply into someone's finances surely that's wrong.?

Not when they are handing out free money it's not.

georgiasdragons wrote: »

I mean they will see Regular maintenance payments sometimes cash sometimes transfers.

this is what they are looking for

georgiasdragons

wiltsguy wrote: »

Not when they are handing out free money it's not.



this is what they are looking for

You don't have to declare maintenance payments for tax credits
So this would have no effect on your award

wiltsguy_2

georgiasdragons wrote: »

sometimes cash sometimes transfers.

this is what they shall flag up

georgiasdragons

wiltsguy wrote: »

this is what they shall flag up

Why ?
Can you explain further what is wrong with having regular maintenance payments and why does it matter if it's transfers or cash?

wiltsguy_2

georgiasdragons wrote: »

Why ?
Can you explain further what is wrong with having regular maintenance payments and why does it matter if it's transfers or cash?

im not saying maintenance payments, im saying they have a right to check bank statements if they suspect anything fishy, and to check for any other regular payments or deposits to detect fraudulant claims. and if no one wants their bank statements checked it's simple, stop the claim

georgiasdragons

wiltsguy wrote: »

im not saying maintenance payments, im saying they have a right to check bank statements if they suspect anything fishy, and to check for any other regular payments or deposits to detect fraudulant claims. and if no one wants their bank statements checked it's simple, stop the claim

Thanks for your reply

I have sent full years bank statements to them to check for child care payments.

cifpower

Do you and your girlfriend live as a couple? Do your wages supplement hers? I'm just struggling to square the low wage/extra mortgage payments circle

robotsindisguise

Thanks to everyone who has taken the time to reply. Apologies for the delay, GF had to go away at the weekend.

Had a chance to have a quick look at the paperwork and as someone mentioned previously the query specifically relates to employment and hours worked.

GF thought the request was for bank statements but this has actually been ‘greyed’ out. The request seems to be for payslips and proof of contract/working hours/employment etc.

With regards to a few other questions:

I too am a taxpayer and completely understand the point made ref. taxpayers subsidising this. To be fair to my GF though, even before she lent the money to her friend, she never intended to leave it in an account to gain interest. It had been borrowed with the intention to use straight away and so no real interest/profit was ever anticipated (she did originally confirm this with Tax Credits staff).

GF has confirmed that there has never been an intention to charge her friend interest. She feels she has lent it to a ‘sister’ and basically the amount borrowed is the amount that her friend will pay back. The amount her friend regularly pays back does not go into a special savings/high interest account and does not linger in her basic bank account.

Compared to the divorce the remortage was actually fairly straight forward – the solicitors arranged most of this (and took their fees before the funds were released). The remainder was transferred to a basic bank account (no special interest rates) and was in and out of the account in a matter of days.

My GF made detailed notes during the divorce and these indicate that a lender was used who did take a proportion of GF’s tax credits into account when assessing the application (though GF was also on a higher salary then and was receiving less in tax credits). Maintenance payments were also awarded by court order and apparently this improved the choice of lender (though this was short lived as GF’s ex has barely paid maintenance since the divorce, but that’s another story).

As mentioned the property was purchased for a very good price and my GF had originally put down a 10% deposit (this was prior to the divorce and before she was awarded tax credits). Because the outstanding mortgage at the point of remortgaging was 50% less that the value of the property (GF and ex had to get independent property valuations during their divorce) and all previous repayments had been met, the lender didn’t object.

We don’t live as a couple, my GF is very independent and the reason I'm helping her look into this at the moment is because she has some family matters to sort through.

The monthly mortgage payment is actually less than it used to be, particularly as it’s linked to interest rates (tracker). My GF is very good with her money, and has little debt apart from the mortgage. The tax credit award and her income are sufficient to live on, though it has to be said that she doesn’t live a lavish life style (e.g. holidays, fancy cars etc.). She looks for the best deals on everything!