Friend been caught defrauding tax credits

[Adviceinscotland]

Friend just called me in a right state. Has been sick etc. had a letter from hmrc this morning saying they have found out through credit files that she is not a single parent and has been claiming as one.

She has a month to call them and explain herself.

As far as I know it has gone on for a few years.

My sympathy is very limited but I know how skintight they are and that she has used the money to live not for luxuries.

Just wondering if anyone can give me some idea of what may happen to her.

As far as I can make out we are talking thousands

£67K wow! Fingers crossed MooMa that it is a big fat cheque. For us both! I agree they know how much we get paid, and if they communicated directly with the childcare provider who also pays tax etc, or even if we had to provide a letter from childcare provider before the claim is agreed? Oh well. We should hear soon.

I believe the tax credits database and income tax databases are different, plus you can take things like Gift Aid payments off your income, so easier for everybody to work out their own figures. I imagine it would be a massive job to write a database which links up income figures for two parties, deductions, savings etc etc

For example I realised this year that the scout and guide subscriptions we pay are gift-aided, therefore you can take this figure off your income for tax credits - essentially you get 41p back for every pound you pay in subscriptions

I need to look into stuff like that mrsmini thank you.

67k that would buy a house in Scotland!!

MrsMinivers Don't think that it is you that gets the benefit of gift aid. The gift aid thing is so that charities can claim back the tax that you have paid on any donation. You have to be a taxpayer before a charity can claim back the tax, that's why there is sometimes a box to tick confirming you are taxpayer on forms accompanying charitable donations.

Yes, the charity gets the tax back, however gift aid donations are taken off your income when you work out the figures to declare for tax credits. See here

Update- friend has overpayment off 18k, should go down to 15-16k after they work out how much she would have been due as a couple last year and subtract that from the total.

No fine or punishment of any sort.

She has not worked out the payment plan yet but seemingly it can be paid over ten years.

blimey no wonder people defraud the benefits system

I am sorry but there is no way that they just used the money to live on. That is a lot of money, more disposable income than I have a month and she knew what she was doing.

I think it is shame she hasn't been charged.

What does her partner do?

Her partner is in the navy.

He still knows nothing off it.

I've not seen her much lately as we are packing up to move away, she knew that I had posted here back in the summer though when looking for advice.

Hi Im new here and really need help!
my daughter started seeing her 1st bf last sept, shes 13, and his mum works for HMRC. All of a sudden iv recieved a letter from TC to tell me im under investigation for claiming as a single and they believe im not.
my husband and i quietly {didnt inform anyone socially or our kids} quite some time ago as I have mental health issues! His father is terminal and so he has been 'living' here to let his parents have some time together before his dad passes.
my benefit goes into a separate account but our mortgage is still joint. I have had to prove this before, now they want me to prove everything! all the bills and car is in my name, but Im sure his tax details and drivers stuff is registered here! we do not share a bed, I sleep on the sofa, i am totally crapping myself!! Im so annoyed for being put in this position. who investigates their sons GF? however, it turns out that she, her mum, aunt and uncle all work for HMRC and her uncle is chief of the fraud team! So now it seems serious...advice please

If you are still married to your DH and live in the same house, regardless of your sleeping arrangements, have a joint mortgage, presumably he also pays something for bills, food, etc - I don't see how you thought it was appropriate to claim as a single person when you are obviously not.

I think you have no alternative but to provide them with the information they have requested and hope they can work out an acceptable repayment plan.

Oh ffs zombie thread.

diddly please start your own thread...this one is ancient.