Just noticed made huge error on tax credits - very worried

[binxthecat1]

I've just sat down with my renewal pack and have noticed that my working hours are so out of date. I am feeling sick. I have on there that I work 32 hours but that was in my last job that ended December 2013!! since then I have worked under 16 hours so not eligible for WTC. My only 'excuse' is my hubbie passed away suddenly, I've moved house, have a severely disabled daughter to care for and I just didn't even think or notice about this until opening this form. I guess that means I have done last years form wrong so will need to check. Is it best to call them and just tell them. I am not sure I can cope with anything else in my life but I will accept any consequences but it was completely unintentional. I think there may be a total repayment of £3k to £4k. Will I be prosecuted do you think? My life is a complete mess.

So sorry to hear about your husband

I think you are highly unlikely to be prosecuted. Our CAB has clients with Tax Credit overpayments of similar amounts (& some with much bigger amounts), and I've not seen anyone prosecuted for an oversight like this. Plus, if you are in financial difficulties they will 'park' the overpayment until you can afford to start repaying it. It might be a good idea to draw up a budget showing your income and outgoings, as they will ask you about this when they've calculated your overpayment, to see whether you can afford to repay at the moment.

I'm not very experienced with tax credits, but generally (I'm thinking HMRC) if you raise the issue, you will get a better outcome than if they raise it.

Also - it might be worth going to see your local CAB as they will be able to check if you and your daughter are getting all the benefits you are entitled to, and they may have info about support groups etc locally, if you are interested. Have you got friends / other family to support you nearby? Lots of support on here

Sorry to hear about your husband op x
You won't get prosecuted, they will set up a payment plan for you to pay back anything you owe, you can pay it back at what you can afford each month.

Just phone them.

Thank you for your messages. I think I will have to call in and just tell them and hope they don't think it was deliberate or I might write a letter as I just don't know if I can manage a call without crying. I have a few members of family here (reason for moving) so there is some support. I thought the amount of money was huge so would be in big trouble but it seems that there are others in the same boat and with even more. I haven't got anything else wrong and never been in trouble before. Should I send in my P45 for my last full time job to show them the dates and changes in work. I kept them up to date with address change and husband's death so maybe they will wonder why I didn't mention this if I could do all of that?

I would strongly suggest a letter (with relevant proof attached) sent recorfed delivery over phoning in.

I expect you will have to repay in instalments but I think a prosecution is unlikely.

A letter is a very good way of getting in touch with HMRC. It will go to the right person/dept without you being on hold/having to explain yourself to dozens of people. I always write to them and get a reasonably rapid response.

I agree with all pps, they won't prosecute you but you will have to repay.

I'm so sorry for your loss and your stress at this time.

Write recorded delivery, keep a copy. If you manage it get it in the post tomorrow.
Good luck.