Not declaring tax refund to UC

stupidaspie

My mum got one last month and I've just seen the back page of the letter, saying you should declare it to UC, and she hasn't. She's been awarded LCW and the refund was far less than the LCW Allowance rate, so does that mean she won't be sanctioned for not telling them if they find out?

calcotti

Just tell them now. “I realise that I omitted to tell you that I received a tax refund of xxx on xxx. Let me know if you need any more information.” They’ll either recalculate last month or take it into account this month. If, as you say, it is less than her work allowance (If that’s what you mean by LCW allowance rate) it will make no difference anyway. 

stupidaspie

calcotti said:

Just tell them now. “I realise that I omitted to tell you that I received a tax refund of xxx on xxx. Let me know if you need any more information.” They’ll either recalculate last month or take it into account this month. If, as you say, it is less than her work allowance (If that’s what you mean by LCW allowance rate) it will make no difference anyway. 

That is what I meant. So it won't matter that she's reported it late?

MalMonroe

In my experience, it's always best to declare EVERY little THING. Even if you do not think it's important. DWP and HMRC work closely together to investigate benefits fraud and they will find out about this sooner or later.

When you tell them, they may well say 'don't worry, it's only a small amount and it doesn't affect anything' - but it really is always better to be safe than sorry because THEY like to be the ones in charge.

Always best to be very honest where benefits are concerned because it can so easily backfire - and they can come after you at any time, years later if that's how long it takes them to join up the dots.

They can even pursue people who aren't on benefits as they did with a relative of mine who went through hell because someone reported him as a benefits abuser. He ended up having to get a solicitor to write a cease and desist letter to the DWP, after which he heard nothing else. The solicitor was so outraged about the injustice that he kindly acted free of charge. 

However, we all learned a lesson from that, don't mess with DWP. He never did find out who reported him.

calcotti

stupidaspie said:

calcotti said:

Just tell them now. “I realise that I omitted to tell you that I received a tax refund of xxx on xxx. Let me know if you need any more information.” They’ll either recalculate last month or take it into account this month. If, as you say, it is less than her work allowance (If that’s what you mean by LCW allowance rate) it will make no difference anyway. 

That is what I meant. So it won't matter that she's reported it late?

It’s a month late, I really don’t think it will matter. But definitely tell them.

TELLIT01

stupidaspie said:

That is what I meant. So it won't matter that she's reported it late?

The tax rebate must be reported.  Reporting it a few weeks after receipt, particularly in the current climate, isn't going to be a problem.  Not reporting it at all could end up being a very bad decision.

stupidaspie

Just realised the letter is nearly two months old. I think she got the money last month.

calcotti

stupidaspie said:

Just realised the letter is nearly two months old. I think she got the money last month.

As previously advised just put a note in UC journal saying how much the rebate was and the date on which it was received.

stupidaspie

Should I use the date on the letter or the date funds reached her account?

TELLIT01

Date funds received.

[Deleted User]

All you need to do is as you have been advised then move on.