Aibu Tax rebate, universal credit, savings.

[Whatthebuzz]

I am a single mum to a couple of kids (dad not involved at all) and have a small self employed business. I do self assessment with help of an accountant.

I haven’t claimed my tax rebate for 4 years and it’s now £10,000 credit due to me to claim when I look in my gateway thing.

I am just ignoring it. Aibu?

I am not sure what to do. If I close my universal credit claim and get a refund can I apply again when I spend it?

Ideally I’d like to spend the rebate on a new van for the business, some supplies and a family holiday maybe £2000 (the first in 5 years).

I think then would the van be another rebate? Would I be eligible to reapply for universal credit?

I have absolutely no idea what to do and I’ve ignored it for 4 years because I have terrible anxiety and feel like if I tell my benefits officer about the due rebate they’ll cancel my UC claim and me and the kids will be left without any UC and the tax rebate not paid. I also don’t want to end up owing any money back to UC so I’m just doing nothing. Is that Bu?

If anyone could help please?!

£16,000 is the capital limit for UC; for savings over £6,000, tariff income is deducted. You risk a deprivation of capital decision if you try and play the system like you suggest. You are better off declaring it, telling UC how you wish to use the capital- they may decide it is acceptable business expenditure and it won't affect UC. You're on risky ground already because DWP could argue you already have the capital but are choosing not to access it

Speak to Citizens Advice. You could end up owing all your benefits back.

Surely this is fraud?

This