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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be amazed at how easy it seems to be to rip of tax credits!!

80 replies

icedcoffeecake · 06/06/2009 10:04

turns out after talking to two mumsn from school that mum one has put down her husbands yearly income at £8000 less to get more money and another claims that her childminding friend looks after her dd an gets £100 a week for this (£50 of which she actually gives to her mum for watching said dd)

how many others over the country must be doing this and why dont they get caught?

i will be calling the helpline and reporting btw!

OP posts:
Ninkynork · 06/06/2009 22:03

That's fine, I do understand and I'm with you

canttouchthis · 06/06/2009 22:07

cool.

SomeGuy · 06/06/2009 22:12

It's very easy to game it if you want.

You can set up a self-employed, e.g., as a private tutor, do a few hours teaching, spend the rest of the time 'preparing', which will make it up to 16 hours, and then rake in about £8k in tax credits on top.

BoffinMum · 06/06/2009 22:16

There are two things nobody can avoid ultimately - death and taxes. So people shouldn't do this. Plus it's mean to the rest of the population who are honest.

ilovespagbol · 06/06/2009 22:31

Unfortunately, plenty of people take the piss and will screw the system for all it is worth and are unscrupulous. Somebody I know, self employed, asked for a receipt for the M6 toll that I had paid for so she could include it in her claims. We were on our way to a funeral. I never felt the same way about her after that. Karma, what goes around comes around. I sleep soundly at night (well apart from DD wakings that is...).

canttouchthis · 06/06/2009 22:34

ilovespagbol, totally in agreement with you there. karma has a way...

canttouchthis · 06/06/2009 22:37

someguy, £8k in tax credits isn't exactly going to give you a great lifestyle is it though. it can't offer you the good life. it makes more sense to actually get out there and really earn it honestly.
as others have said, the system is so messed up, it's just a hand-out country we live in. and our children will pay the price for it sadly.

peppapighastakenovermylife · 06/06/2009 22:46

I got the scariest letter last year saying that I was under investigation for falsifying a low income. The letter was awful - really strongly worded, threats about large fines (plus paying money back) etc etc.

What had happended is that I had been on maternity leave and when on SMP you can deduct £100 a week from your overall income figure - I had rung up and checked that when I gave them my yearly figures, double checked etc etc. No one wrote that down though.

I am guessing it was just bad luck that I was picked to be investigated and when I rang and explained they were actually lovely about it as obviously I wasnt in the wrong. However I would not like to risk being in the position if I had cheated them!

I too am paranoid and ring them constantly about changes in costs, hours of work etc.

lou031205 · 06/06/2009 22:52

I don't think we live in a 'hand-out country'. The government knows how much it costs to live as a family in this country. They know it would cost a lot more for the economy to raise the minimum wage to a living wage. So they top up in the form of tax credits. That way, people with more children get more tax credits, and the minimum wage stays low enough that companies are not priced out of the market.

It is the corrupt practice of individuals who believe that if you can get away with it, you should, that are at fault here.

Original poster
icedcoffeecake · 08/06/2009 13:55

i have called the helpline now and cant believe how bad i feel. i am actually shaking.

can this really not be traced back to me? am more worried about my dc getting a hard time at school if it does.

OP posts:
cheltenhamgal · 08/06/2009 14:33

They do check up on you, and now I think that the Tax/Working Credits are linked in with the Housing Benefit as I hadn't told the Housing Benefit about my Tax Credits decreasing but they knew already. I have also had the Tax Credits call my child care provider and ask how much money I am paying each week. They definately do random checks also as I have had to send in information for one of those.

flaminhell · 08/06/2009 14:43

Just read through thread, and have to say that Iced you are very naive if you dont think they wont put 2 + 2 toghether and come up with you, one of the last people they told about their situation.

the system maybe half cocked and they may be a pair of tits but, if they are that bold as to talk about things that the majority of people would find embarrasing they will be bold enough to cause you aggro if they suspect you, if I was you I would make sure you dont avoid them be nice but not overly and make sure you keep your ears open.

Big mistake, to soon after your conversation, they will figure it out, good luck.

lou031205 · 08/06/2009 15:20

icedcoffeecake, you have told tax credits of your concerns. They will check them out. If the people in question have nothing to hide, they will be fine. If not, they will be in trouble. Your son's school is responsible for protecting him during that time, regardless of what is happening outside that time.

canttouchthis · 08/06/2009 21:11

icedcoffee, good for you for having the balls to actually grass them up. we need more people like you in the world. if they've nothing to hide then they won't have anything to worry about when they get a phone call from HMRC.

TheKingAndI · 09/06/2009 15:45

I know someone who got a massive divorce settlement (about £1.5m - she basically lives off the interest), has 3 kids at private school (all paid for by ex), yet income of £8,000 from PT job. However, she gets loads in tax credits because, on paper, she's a single mum on a low income. The system stinks.

Peachy · 09/06/2009 15:52

We've been checked up on before with a CM (many years ago)

Peachy · 09/06/2009 15:54
Blondie79 · 09/06/2009 15:57

As someone who works for HMRC I can assure you that there are more checks than you realise going on.

As a taxpayer I am pissed off with people who do this - after all tac credits come from taxpayers taxes.

Peachy · 09/06/2009 16:10

Ah Blondie I tempewd with HMRC many years back for eighteen months

I hope it's a happier organisation than it used to be? (was actually HMC back then)

I am forever reminding DH to make triplys ure of his records, because you will be found out.

MrsTittleMouse · 09/06/2009 16:12

You have to claim your interest from savings and investments on your form though. We have had to do this since we started claiming. So in theory you can't live off a large sum of money and claim to be poor.

Blondie79 · 09/06/2009 16:16

Peachy - lets just say I'm glad to be on Mat leave

Flibbertyjibbet · 09/06/2009 16:35

Its pretty easy for the tax credits people to find out if you are fiddling -

we are both self employed. Moved house in december, did tax returns in december (last min yes I know!) with change of address on.

Forgot about change of address to the tax credits people.

Two weeks into January we each got a letter from the tax credit people saying our address details had changed on the inland revenue records and could we confirm our address and whether we are both still at the same address.

So, as tax credits are based on taxable income, and the inland revenue knows exactly what you taxable income you earn..... its not rocket science is it?

And the one who claims to pay money to a nursery/childminder will get caught out too as our nursery told me that the tax credits dept do check out the registered childcare providers that people say they use, whether you actually use them and how much you pay the childcare provider.

ALways best to be honest imo.

DP and I are both self employed both of us after reduncancy so I will do hug] with peachy and ninkynonk

Flibbertyjibbet · 09/06/2009 16:40

oo what happened there it was meant to be a [grouphug] but has turned into a link to something!

CurryMaid · 09/06/2009 16:43

Is it true that Tax Credits don't take into account any investments you may have?

Flibbertyjibbet · 09/06/2009 16:48

They don't take account the value of the investments or savings, but they do take account of the dividends/interest as that is taxable income, and any taxable income arising from sale of investments.

If the investment is property then the taxable income would be rental or profits on the sale of it.

The clue is in the name, tax credits.