Tax credits compliance letter.

(32 Posts)
Tmj00004 Tue 08-Jul-14 19:16:07

I received a letter from HMRC compliance asking for ridiculous amounts of information including 12 months worth of bank statements!!

I am a single parent and always have been, I moved in January of this year (my sisters fiancée let me pick a house which he bought and I legitimately pay him rent every month! My last landlord was selling my old house and my sisters fiancée was looking to do a buy to let so win win situation) anyway when I moved I changed everything to my new address (I work 7.5 hours so claim housing benefit, council tax benefit and I get some income support to top up my earnings again all legitamate!) about 2 weeks after I moved in I got a knock at the door from 2 people who were from the council, they asked to come in and said they were here to do a tenancy check to make sure I was living here, they took proof of id asked a few questions and left (housing benefit is still getting paid so all fine.)
In March I got a letter from DWP saying that they had been informed I was working more than they knew about (which I wasn't!) and they had stopped my payments and I had to send them a years worth of wageslips ( this still hasn't been sorted as the wageslips kept "getting lost" in the post so I sent them recorded delivery yesterday)
Now I have received this letter from DWP for tax credits (I only get child tax which is what I am entitled to) I feel like I am being picked on, my daughter is now 4 and I have never been through anything like this when claiming my benefits!!
I'm so stressed with money as my income support (for all it isn't much) has been stopped and they are now threatening to stop my tax credits!
Has anyone else been through this? This makes me think being honest isn't always best as I am so stressed out with money and no1 can help me!!

Sorry for the long post but I had to fit everything in.

Thecircle Tue 08-Jul-14 22:05:04

I doubt you will have any problems then, definitely get onto your mp ASAP about your income support- with hmrc calls from mp's do wonders

Proclean Tue 08-Jul-14 22:41:21

When my kids were younger the tax credits wrote to me stating I owed back nearly £9000, I was considerably upset and rang them, it was then stated that they had no records to suggest I owed anything and they didn't know why I had been sent that.

For the last year of my entitlement before youngest dc became too old for me to claim, I deliberately did not claim my allowance because I no longer trusted them not to suddenly declare me indebted to them by phenominal amounts! :-(

taxi4ballet Wed 09-Jul-14 00:06:47

I agree with the others who say it could well be to do with the post you are still receiving that is addressed to the previous occupants, and this is making them think that there is more than one adult living at the address.

Could it also be that they have checked and found out that the property was bought by a man and you moved in straight away. Perhaps they think your partner owns the property and you are pretending to pay 'rent' to him? It is a common scam I believe, and they will want to check your bank statements to see whether you are really paying rent or not.

NeedsAsockamnesty Wed 09-Jul-14 21:44:07

If the DWP have been informed, you can bet the HMRC will have been too - no way is this random because you fall into a risk group OP. Somebody has tried to make trouble for you

Hmrc have recently been given guidance on letters issued.

They start with "we have reason to believe we are paying you to much" (could be a word or 2 out) and subsequent letters refer to discrepancies.(even if they have no information suggesting any)

Compliance staff have complained about these letters saying they are hostile and imply wrong doing on behalf of the client but they have been told they have to use them.

The reason for this is that stupid people who are doing something wrong are more likely to fess up if they think they already know. These letters are being used for BOTH the random and data match checks. If you are doing nothing wrong its always a random rather than data match check

Incidentally they have also been issued guidance that states if a customer does not provide information requested in the requested format then cease award and treat it as if no information has been received. (This particular it of guidance is being challenged by several support services)

UnderEstherMate Wed 09-Jul-14 21:50:09

Apologies if I haven't RTFT properly and someone has already mentioned this (I'm exhausted!) But isn't it the case that they say you can't claim housing benefit if your landlord is family. Perhaps him being your sister's fiancé is a factor, even though they're not married yet?

NeedsAsockamnesty Thu 10-Jul-14 08:38:16

That's all to do with contrived tenancies and a sisters husband or stbdh would not be an issue.

Also in some circumstances providing they don't live in the house you can rent off some relatives

UncleT Thu 10-Jul-14 09:35:42

While it's not nice to go through, compliance checks are necessary and not unique to you OP. Just give them what they ask for and all will be well. The government has a right to make such checks, and generally for good reason (which is not for a second to suggest any wrongdoing in your case, but merely to help improve and maintain integrity of the system).

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