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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Housing Benefit related. Am very very worried. Please advise.

40 replies

underadifferentnameusually · 14/09/2013 19:17

I work p/t self employed. I have been taking invoices, bank statements, receipts for expenses to housing benefit every 3 months so that they can assess my housing benefit. I am a single parent and can't afford to pay any more of my rent. I am really struggling as it is.

I have done something really stupid though.

During the 6 weeks holidays, I was working so many hours to try to make ends meet and treat my DC to a few activities that I was struggling to fit in everything and work.
My son offered to run some errands for me, including shopping, paying bills and taking my other DC on days out. I agreed that this would free up some time for me so I could get my work done.

To save my son asking for money every 5 minutes, I gave him my debit card and my online bank details. I trust him implicitly.

Now, DS got into a habit of doing my shopping, telling me what he had spent and giving me the remainder of my income that week to me in cash, so I could get petrol and other things I needed during the week. It seemed silly to keep passing the debit card back and forth.

This was only ever meant to be a temporary arrangement during the school holidays, although tbf, I have had every single penny I have earnt, and all of my tax credits, either in the form of bills being paid which DS gave me receipts for, shopping which I had receipts for or cash.

I have not had the internet until a couple of days ago, because it was cut off in July and I couldn't afford the bill until Wednesday.

Anyway, I decided to check my account online and although DS has been paying me every penny that was paid into my account, he has obviously been doing this out of his own wages, because my bank is full of transactions to an online game site that I knew nothing about!! There are no cash withdrawals, a few bank transfers, and all of these transactions to the same site. I honestly had no idea he was doing this.

I spoke to the bank, who said I could report it as a theft to the police, but they weren't sure how the police would view it, since I have had the money, and basically my son has used the bank as his own account while giving me equal amounts either in goods or cash. He is paid in cash from his employer btw.

Anyhow, how am I going to explain this to the housing benefit officer at my next review at the end of September?
My invoices show exactly how much I have earnt, but when they see that the bank statements show I apparently spend every penny on leisure pursuits, what will happen?
Not to mention that my son has made a number of cash deposits to my account to give him more money to spend on the same site. Surely housing benefit will see that as income for the purposes of assessing my housing benefit wont they?
Perhaps I should mention that my son is paid in cash and does not have a bank account of his own at the moment.

My mind is in a whirl. I have cancelled my debit card and am waiting for a new one to be delivered.

Please, any advice??

OP posts:
RedHelenB · 14/09/2013 19:22

I think you need to explain what has happened as you have here. I can't see why it would affect your HB in any way as you presumably will have your payslips to back up what you state as your wages? I think YABU to worry about nothing!!!!! No, seriously, give your son a stern talking to & next time withdraw cash for food shopping if he does it.

MrsRajeshKoothrappali · 14/09/2013 19:23

Nothing.

They calculate it by your incomings, not your outgoings.

LuisSuarezTeeth · 14/09/2013 19:31

They are only concerned with income - not expenditure for HB

You have done brilliantly. The only problem would occur if you had to pay any arrears and declare your outgoings for personal spending.

Stern words with DS and a different system of managing this.

It'll be ok x

RedHelenB · 14/09/2013 19:37

Sorry,just realised you are self employed but the same principle applies, just show them your invoices/receipte.

underadifferentnameusually · 14/09/2013 19:37

I think the big ? is going to be concerning the deposits made. These will be classed as part of my income wont they?
The truth is, they were nothing to do with me, but housing benefit will want proof and I don't have proof that I didn't deposit that money. There is no reference on the deposits. They just say cash deposit.

My main concern is the deposits and that if housing benefit assessor thinks I have been spending all of the money on entertaining myself, if they don't believe me when I explain, then they will of course wonder how I am affording to live, which will make them suspect I am receiving more income than I am wont it?

I have tried to explain all of this to my son, but he just says I should take my invoices down and my receipts, I don't have time to do any other work and look after my children, and I shouldn't bother taking the pointless bank statements down to show them, because they don't accurately reflect my income or outgoings.

I don't know what to do.

OP posts:
TodaysAGoodDay · 14/09/2013 19:39

They don't care what you spend your money on, just how much you earn and how often, try not to worry too much, but do have a word with DS though...

AlannaPartridge · 14/09/2013 19:43

How you spend your money is entirely your business. You are not even legally required to spend your HB on housing any more than you HAVE to spend your child benefit on your child.

So long as HB are aware of all of your income that's all they'll care about. Honestly.

lagoonhaze · 14/09/2013 19:43

Your son needs to get an account of his own! Is there a addiction to the online games?

Just explain it all to Housing benefits. They are real people and will appreciate honesty.

LuisSuarezTeeth · 14/09/2013 19:45

Do you have to go every 3 months? Is that the agreement? I ask because its what happens over the course of the tax year that matters.

LuisSuarezTeeth · 14/09/2013 19:47

I do see what you mean about the cash deposits though. Have you looked purely at the income, whatever the source? How does it compare to your last declaration? Sorry I think I may have misunderstood your initial OP

AlannaPartridge · 14/09/2013 19:48

Write a letter explaining the situation, as you have done here.

Print off your bank statements, then highlight in one colour your income from your work, and in another the deposits from your son.

They may ask you for more information, but money leaves a trail, so they situation can be shown to be true.

You haven't actually done anything wrong, so try not to worry too much.

BellEndTent · 14/09/2013 19:48

They won't be taken as income if you explain what has happened wrt your son. You will probably have to sign a statement to that effect but that is all.

You can get pre-paid "debit" card things which can be used by teenagers to purchaseonline too if your son doesn't yet have access to a debit card and wants to play games online. My brother used to have one, not sure what they are called.

LuisSuarezTeeth · 14/09/2013 19:48

How do you record your accounts btw?

Iamhappyanddelighted · 14/09/2013 20:00

Write it all down and get your son to write it down too, to confirm that the extra money was not deposited for your benefit and you did not have access to it. I have helped someone write a similar letter recently and housing benefit accepted that basically someone else had used the account to store money, but that the HB claimant did not have access to it. You should be fine.

underadifferentnameusually · 14/09/2013 20:02

Thank you everyone. I haven't even had a good look at the bank statements yet.
I asked my son if he is addicted to this site, I am appalled at how much he has spent on there, but he just laughed and said no, he earns his money and spends it as he sees fit.
He says he has not stolen a penny from me. We have had an enormous argument about this.
He has never needed a bank account because he has gone straight from school into this job that pays him in cash every week.
He does have a savings account but there is only a card to withdraw money from an ATM with that account, he doesn't have a debit card. I'm not sure a debit card is a good idea atm if this is how he spends his money.

Luis, What do you mean, how do I record my accounts? I don't really understand how to keep accounts. :( I have invoices from the company I work on behalf of. I only work on behalf of one company and send me an invoice every 2 weeks. I keep receipts for expenses in a folder.

I am happy to make a statement, but my son is refusing to sign or write any statement because despite what I have said to him, about how awful this looks, he is adamant that he hasn't done anything wrong.

OP posts:
ThisWayForCrazy · 14/09/2013 20:08

Why on earth do you have to provide bank statements? I've never heard of that apart from at the start of a claim.

lagoonhaze · 14/09/2013 20:10

How old is your son?

I think he needs a kick up the backside with his attitude. Is he paying lodge to you? Needs a few financial lessons I think!

ThisWayForCrazy · 14/09/2013 20:11

Does your son live with you? Are you declaring his income or the rent he pays you to housing benefit?

underadifferentnameusually · 14/09/2013 20:16

I don't know ThisWay.

Housing benefit said that because I had just started the self employment, I had to provide evidence of my income and expenses every 3 months. I think they want this information for the first year. I am not sure. I am expecting a request for information about my income and expenses at the end of September.

I started this self employment at the end of March. When they send a letter asking for information, the letter says I must provide invoices, receipts relating to my self employment, companies house records, bank statements, savings statements, any invoices I have issued and a few other things I can't remember.
I don't have companies house records, and I don't have a savings account, so I don't provide those. I just do a small part time self employed job. I just provide everything else.

If I could only take invoices and expenses down, it would save me a lot of embarrassment. I know I shouldn't feel embarrassed, but I do.

OP posts:
underadifferentnameusually · 14/09/2013 20:17

My son does not live with me. He is over 18 btw.

OP posts:
ThisWayForCrazy · 14/09/2013 20:17

Ah ok, I missed the self employed bit. I would just tell the truth, perhaps even get your son to write a letter to hand in?

Thymeout · 14/09/2013 20:17

Does your son pay tax? This could open a whole can of worms for him. And his employer.

underadifferentnameusually · 14/09/2013 20:23

I will have to speak to son again about writing a letter. He does pay tax, he gets a wage slip every week showing this. His employers just pay net pay in cash, they pay everyone at his firm in cash. I know a few of his colleagues and they are all paid in cash.

OP posts:
DumSpiroSpero · 14/09/2013 20:28

I'm sure HB will have had to deal with situations not dissimilar to this before.

Can you speak to the person you usually deal with before your next assessment is due and explain the situation - hopefully they will be able to put your mind at rest.

It may also be worth speaking to Shelter who deal with all sorts of housing issues and should be able to advise/reassure you.

LuisSuarezTeeth · 14/09/2013 20:33

Sorry, just meant do you record your accounts in a book, on the computer or whatever. If on computer it would be easy to print off your payments etc.

Please stop panicking I know that's easy for me to say though.