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Original poster

Is this benefit fraud?

262 replies

Gingerangel · 06/12/2022 15:57

Just found out a friend of mine who is about to come into a large sum of money is intending to hide this money in a relatives bank account and not declare it to the DWP and have her relative just give her the cash as and when she asks for it. She’s doing this to hide it from the benefits people…

I was worried about her and told her that I think she might get into trouble doing this however she’s insisting on going ahead with this and thinks the DWP won’t notice anything is amiss. Is this benefit fraud? Can she get into trouble? And has anyone else done something like this and got away with it?

OP posts:
LovedFedAndNoonesDead · 06/12/2022 16:23

You h an have under £6000 in savings and it won’t affect your benefits; between £6000 and £16000, you have deductions of £4.35/£250 over £6000. Once your savings reach £16000 your entitlement to benefits stops and, when it goes under that amount, you can reclaim but benefits people would probably ask for proof of where the money went - and then will decide whether that’s appropriate spending or deliberate deprivation of capital.

As the money is coming from an inheritance, there will be a paper trail and quite likely that HMRC will be informed, even if it goes into someone else’s account. If your friend doesn’t declare it then they are committing benefit fraud and would risk prosecution as well as loss of benefits

Original poster
Gingerangel · 06/12/2022 16:24

wintertime9 · 06/12/2022 16:21

I'd report her

I would never do that she’s a struggling single parent, but I’m worried someone else she’s told might do… But would DWP actually be able to prosecute her for benefit fraud if there’s never been any money in her account? I mean if they investigate her account they won’t be able to see anything amiss right?

OP posts:
Chippy1234 · 06/12/2022 16:28

So she is a struggling single parent who is planning to defraud tax payers in order to keep the money herself.

What has being a single parent got to do with anything. Is it OK if she is a single parent to do this??

People like this annoy me massively. They think taxes and paying their way is for the rest of us.

If its a sale of a house it could be £100,000 plus. Everyone would like that tax free wouldnt they and keep their benefits!!

I hope she is on very very good terms with her brother. What is he 'getting' out of this? A bit of money too?

Interested in this thread?

Then you might like threads about this subject:

Benefits
palygold · 06/12/2022 16:30

If the duke of Westminster inherited a lot of money why would he not want to pay the full amount of inheritance tax?

Hmm. Irrelevant much!

The OP is claiming benefits intended for those in genuine need when she has the option to change that with a large sum of money. The financial motive is clear, but I don't understand why someone would do this.

LeakyTapTap · 06/12/2022 16:31

palygold · 06/12/2022 16:13

If she has such a large sum of money why would she want to do this?

Because the benefits system is utterly broken and shit. If she tells them about it, she'll probably lose her benefits (including stuff like dental care) and starting a new claim can take ages. With everything being so shit and expensive, I can't say I blame her!

Feelallright · 06/12/2022 16:33

Why are people talking about inheritance? It’s from a property she/ex already owns. She’s not inheriting anything.

BobbyBobbyBobby · 06/12/2022 16:34

She’s an idiot for telling anyone other than her fellow criminal relative who will be holding the money.

I hope it all goes horribly wrong and her life is ruined.

Yabado · 06/12/2022 16:36

If it was left to her in a will then the executor has to give it to the beneficiaries they can’t just bypass it and even if they do a variation she could still be treated as having the money

When I was the executor of my parents will
i opened up a bank account specifically for the money from the estate and once it hit the account it was transferred to the beneficiaries
who were my son and sister

LadyOfTheFliessssss · 06/12/2022 16:36

I don't blame her, TBH. I don't care if it's fraud or not.

I don't agree with making people on benefits burn through their savings just to stay alive.

Featheryboa · 06/12/2022 16:38

If she already co-owns this property with her ex and hasn't told dwp then surely she's already committing fraud.

StickyCricket · 06/12/2022 16:38

It’s highly unlikely she’d be investigated, she could just say that she owed her brother the money so asked her ex to pay her share of the house sale straight to her brother.

Tillylime · 06/12/2022 16:38

If your friend intends to buy a home then will she lose benefits?
Not sure.
However if her db keeps the money and then she asks for it to use as a deposit the mortgage company are going to ask where the money has come from.
She’s also trusting her db to return the money.

Hoppinggreen · 06/12/2022 16:39

It’s fraud
I hope her family member keeps it

Itwasntevenblackpudding · 06/12/2022 16:39

If it was left to her in a will then the executor has to give it to the beneficiaries

But it hasn't been left to her in a will, so what's that got to do with anything?

Chippy1234 · 06/12/2022 16:39

Yab is correct. If you are a beneficary then it comes to you. The executor cannot pay to someone else for 'benefit reasons'.

Also isnt it really dangerous to put all this trust into the brother?? Additionally there is a lot of detail here and perhaps someone would put two and two together....

Why on earth is she telling seemingly the whole world let alone revealing via this thread!!

lookersnoopy · 06/12/2022 16:39

I would never do that she’s a struggling single parent,

She wouldn't be, if she took her money legitimately

Tillylime · 06/12/2022 16:41

LadyOfTheFliessssss · 06/12/2022 16:36

I don't blame her, TBH. I don't care if it's fraud or not.

I don't agree with making people on benefits burn through their savings just to stay alive.

But they’re allowed to have some savings.
What level is fair?
Someone with £20k, £50k,£200k?
Everyone would claim benefits wouldn’t they?

palygold · 06/12/2022 16:41

Because the benefits system is utterly broken and shit. If she tells them about it, she'll probably lose her benefits (including stuff like dental care) and starting a new claim can take ages. With everything being so shit and expensive, I can't say I blame her!

I suppose it depends how much and what her circumstances are.

Perhaps the OP can tell us? @Gingerangel

BringBackCoffeeCreams · 06/12/2022 16:41

Yes it's fraud and yes they will find out.

Happened to my friend. She inherited a large sum following her dad's death but she actually didn't know. She was seriously ill at the time and living rough, so it was paid into an account her brother opened on her behalf. Years later she was on the road to recovery, housed and claiming benefits. Then out of nowhere she was called in, interviewed under caution and threatened with jail as they'd uncovered this inheritance. Thankfully they eventually accepted that in her case she genuinely didn't know about it.

palygold · 06/12/2022 16:42

Bold fail!

Because the benefits system is utterly broken and shit. If she tells them about it, she'll probably lose her benefits (including stuff like dental care) and starting a new claim can take ages. With everything being so shit and expensive, I can't say I blame her!

I suppose it depends how much and what her circumstances are.

Perhaps the OP can tell us? @Gingerangel

Whatthefuck3456 · 06/12/2022 16:42

your Friend needs to stop telling people her business

Lovageandrose · 06/12/2022 16:42

Hopefully her brother will teach her a lesson and keep the money.

Or you can always report her for benefit fraud and let them decide.

Feelallright · 06/12/2022 16:44

Chippy1234 · 06/12/2022 16:39

Yab is correct. If you are a beneficary then it comes to you. The executor cannot pay to someone else for 'benefit reasons'.

Also isnt it really dangerous to put all this trust into the brother?? Additionally there is a lot of detail here and perhaps someone would put two and two together....

Why on earth is she telling seemingly the whole world let alone revealing via this thread!!

What executor? What beneficiary? What do you mean?

taxpayer1 · 06/12/2022 16:45

So many dishonest people on this thread. Of course, it is fraud. Please copy her details here and I will report her.

Dbank · 06/12/2022 16:45

It would be a criminal offence and easily discovered as the payment will initially made into her account.

Her "friend" might also find it awkward explaining where the money came from if asked by HMRC.

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