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Friend been caught defrauding tax credits

(112 Posts)
Adviceinscotland Sat 21-Jul-12 16:10:18

Friend just called me in a right state. Has been sick etc. had a letter from hmrc this morning saying they have found out through credit files that she is not a single parent and has been claiming as one.

She has a month to call them and explain herself.

As far as I know it has gone on for a few years.

My sympathy is very limited but I know how skintight they are and that she has used the money to live not for luxuries.

Just wondering if anyone can give me some idea of what may happen to her.

As far as I can make out we are talking thousands

MooMa42o Tue 14-Aug-12 15:22:07

No it was disability living allowance, illegitimately claimed for 3 years, i think the final figure was £67k , he was unceremoniously fired & escorted out of the building, nobody new why, then a few months later it is all over the papers, i guess that that was the reason behind the sacking! I agree with Valium queen that the wait between putting in your form is excruciating, hoping they owe you some money all the while stressing out that it could be the other way around, what i don't understand is why do we have to fill out these forms anyway, surly the government knows exactly how much we do or don't get paid & how much benefits we do or don't receive, they should just work it out themselves, why we need to get involved is beyond me! I would take a step back from this "friend" though dishonesty is a bugbear of mine & i would be furious over her actions, fair enough she was "ill" over it but all brought on herself, i not so secretly wish for her to be made an example of & the whole system reviewed!

ValiumQueen Tue 14-Aug-12 15:41:54

£67K wow! Fingers crossed MooMa that it is a big fat cheque. For us both! I agree they know how much we get paid, and if they communicated directly with the childcare provider who also pays tax etc, or even if we had to provide a letter from childcare provider before the claim is agreed? Oh well. We should hear soon.

MrsMiniversCharlady Tue 14-Aug-12 15:44:44

I believe the tax credits database and income tax databases are different, plus you can take things like Gift Aid payments off your income, so easier for everybody to work out their own figures. I imagine it would be a massive job to write a database which links up income figures for two parties, deductions, savings etc etc

MrsMiniversCharlady Tue 14-Aug-12 15:47:26

For example I realised this year that the scout and guide subscriptions we pay are gift-aided, therefore you can take this figure off your income for tax credits - essentially you get 41p back for every pound you pay in subscriptions

ValiumQueen Tue 14-Aug-12 15:52:20

I need to look into stuff like that mrsmini thank you.

Adviceinscotland Tue 14-Aug-12 18:35:40

67k confused that would buy a house in Scotland!!

piebaldpony Tue 14-Aug-12 21:57:22

MrsMinivers Don't think that it is you that gets the benefit of gift aid. The gift aid thing is so that charities can claim back the tax that you have paid on any donation. You have to be a taxpayer before a charity can claim back the tax, that's why there is sometimes a box to tick confirming you are taxpayer on forms accompanying charitable donations.

MrsMiniversCharlady Tue 14-Aug-12 22:02:13

Yes, the charity gets the tax back, however gift aid donations are taken off your income when you work out the figures to declare for tax credits. See here

Adviceinscotland Wed 10-Oct-12 22:35:12

Update- friend has overpayment off 18k, should go down to 15-16k after they work out how much she would have been due as a couple last year and subtract that from the total.

No fine or punishment of any sort.

She has not worked out the payment plan yet but seemingly it can be paid over ten years.

Feckbox Wed 10-Oct-12 22:57:55

blimey no wonder people defraud the benefits system

Happylander Wed 10-Oct-12 23:01:01

I am sorry but there is no way that they just used the money to live on. That is a lot of money, more disposable income than I have a month and she knew what she was doing.

I think it is shame she hasn't been charged.

What does her partner do?

Adviceinscotland Thu 11-Oct-12 08:32:16

Her partner is in the navy.

He still knows nothing off it.

I've not seen her much lately as we are packing up to move away, she knew that I had posted here back in the summer though when looking for advice.

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