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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:
Allthegoodnamesaregoneffs · 06/12/2022 18:55

I love threads like this. And if you look at my post history you will see why.

It amazes me how many people think they are cleverer than the system, how they think they will not get found out and they think they have discovered a loophole that the DWP will not have thought of.

And how they justify their actions to themselves and others thinking it doesn't do any harm.

With this case, there are lots of people that know, it only takes one anonymous referral and the DWP will be all over it, obtaining information from them and also legal documents, it would not be hard to prove at all and could result in serious consequences for them.

It is definitely fraud no matter how you dress it up or justify it

AliceMcK · 06/12/2022 18:58

Surely her brother will have some kind of tax implications. When my DF died my mother tried to get an insurance settlement paid into mine or my DBs bank account. DBs wanted to do it but was already on the tax man’s radar, I said no.

So many people knowing is really risky, there are some not nice people out there who may report for spite, and some who may just feel morally obliged to report. I knew a young single mother who had lost her mum, her DF was also going through a divorce so he moved in with her to help her cope and look after her DCs. His ex reported her to the housing association for having someone else living there to get her into trouble as they didn’t have the best step-mother/daughter relationship.

Wiloswisp · 06/12/2022 18:59

It’s fraud against all of us who work and pay our taxes, that includes you OP.

Interested in this thread?

Then you might like threads about this subject:

Benefits
Blossomtoes · 06/12/2022 19:01

Wiloswisp · 06/12/2022 18:59

It’s fraud against all of us who work and pay our taxes, that includes you OP.

It really isn’t. If nobody committed benefit fraud none of us would pay a penny less tax.

Sandra1984 · 06/12/2022 19:06

That’s a bit strange because she maybe (most probably) get away with it but will be putting the friend in the spot light as the bank might want to know where is that money coming from or flag it, if she gets audited by HMRC what is she going to tell them? “Oh this is not my money I’m just hiding it for my friend who’s on benefits”?

taxpayer1 · 06/12/2022 19:07

ThreeFeetTall · 06/12/2022 18:18

Why doesn't she just buy a two bed flat outright?

Because she wants to keep the council house!

Sandra1984 · 06/12/2022 19:10

ThreeFeetTall · 06/12/2022 18:18

Why doesn't she just buy a two bed flat outright?

Because it’s going to raise The tax man eye brows if you’re on benefits and all of a sudden purchase a house?

Womencanlift · 06/12/2022 19:11

If she is being open about it then all it takes is for her to piss someone off or be jealous of her and top off the DWP

They can then start an investigation and contact the banks involved to do some chasing of the money

Then she would be in trouble and so would her brother for assisting an offender

Friends and family aside that she is telling what is the relationship like with her ex? Doubt he will be discrete as has no reason to and someone connected to him (who doesn’t like your friend or just doesn’t like benefits cheats) could also make the phone call. A new partner of her ex’s would have good motivation to report potentially

Candleabra · 06/12/2022 19:18

Is the house the former matrimonial home? If not, and she jointly owns a house she isn't living in, the value of the house counts as capital and she should have declared it. As anything over £16k exceeds the capital limit for means-tested benefits, she may have been committing fraud already!

I think this too.
She’s playing a dangerous game already.

been and done it. · 06/12/2022 19:20

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.

Jesus where do you think she gets the benefits from - a ruddy tree? It's from the poor sods who are just about keeping their heads above water as usual.

emilydickinsonscat · 06/12/2022 19:20

Another issue she is going to have with all that money landing into an account it should be taxed in some way eg capital gains (she won't need to pay capital gains on the sale of her own and only home - but if it was her 'brothers money' then substantial money is pretty much always taxed when it transfers between 'normal' people eg income tax or capital gains) the very rich have accountants to mitigate taxes but most of us have to pay tax on substantial cash windfalls.

Then she is looking at HMRC potentially sniffing around too.

emilydickinsonscat · 06/12/2022 19:21

Can she put it into her children's savings accounts instead?

GettingItOutThere · 06/12/2022 19:22

if her names on the house they will find out. depravation of assets

shes a fool

Citycentre3 · 06/12/2022 19:23

I would mind my own business. It really has nothing to do with you. Infact your coming accross as a goody two shoes pip squeak., which incidentally no one likes.

AlwaysFullOfQuestions22 · 06/12/2022 19:24

Yes fraud but they'll never know if its not in het account.
My sibling has done this b4.

Kazzyhoward · 06/12/2022 19:25

There's probably going to be CGT to pay on her share of the property too, which needs to be declared and paid to HMRC within 60 days of sale. Yet another "trail" which can be checked against by the benefits agency.

whynotwhatknot · 06/12/2022 19:30

yes ita fraud-dont know how she got a council house but my sister was told she owned a house she would only get help for 6 months then it would stop and her house would have to be sold-shes getting divorced

they will ask where she used to live and what money she will be getting-unless shes already lied about that to get a council place

its nor really fair as the money my sister will get will not be enough for another house so will be used for renting

offyoufuckcuntychops · 06/12/2022 19:30

@Gingerangel If a sudden large deposit is made to your friend's brother's account, this will immediately be flagged up as suspicious and he will be asked where it has come from. He will then have to lie. You can't just deposit huge sums into someone's account without suspicions being raised.

If your friend goes ahead with this, she and her ex husband and her brother are all committing crimes. I would report someone like a shot if I knew they were doing this. Why the hell should other people work their arses off to stay afloat when someone is proposing to be handed a large amount of money and lie about it?

whynotwhatknot · 06/12/2022 19:31

oh yes and money laundering will be flagged up on the brothers account if its a large sum

Pascor · 06/12/2022 19:31

Notanotherone6 · 06/12/2022 16:48

Fraud, perhaps, but I don't blame her. I hate the fact that there's a savings limit for benefits. Why should someone living frugally get less than someone who spends every penny on shite?

So you think someone should be able to have 250,000 in the bank and still get housing benefit and income benefits? Seriously?

whynotwhatknot · 06/12/2022 19:32

Citycentre3 · 06/12/2022 19:23

I would mind my own business. It really has nothing to do with you. Infact your coming accross as a goody two shoes pip squeak., which incidentally no one likes.

wtf-it might not be completely fair but you have to draw a line somewhere

Dibbydoos · 06/12/2022 19:33

Yes it's benefit fraud. That's stealing from every single one of us. No crime is victimless. And if she had a large sum of money, why does she feel she should take benefits? Our country is on its knees. Congrats to your mate for adding it.

I don't quite class this as bad as tax avoidance though, so it's not a capital offence, but honestly I do not understand people being greedy and I would shop her.

Pascor · 06/12/2022 19:34

Gingerangel · 06/12/2022 17:59

She’s in a council house with her 2 children

Show quote history

So it sounds like she already committed benefit fraud to get a council house....as she can't have declared that she owned a house already.

Crumpleton · 06/12/2022 19:35

I've only scouted through the last posts and may have missed it but as she's living in a council house hopefully she isn't doing so on the tax payers expense.
Having a substantial amount of disposable (hidden) savings while getting hand outs from the tax payer certainly won't be looked on to favorably, especially in the current climate.

Riapia · 06/12/2022 19:35

It’s obvious from your OP that your “friend” needs to be a good deal more careful who she confides in.