Benefits and saving account and property abroad

[sorrynamechanged]

I have a friend. She moved to the UK one year ago and i helped them in the process of moving, helping them dealing with estate agent, explaining what the NIN was, choosing best broadband etc.
The husband has found a job in a shop while she goes to clean a house once a week.
I have always thought they worked hard.

However i have just been told that they take benefits (at least council tax discount and child tax benefits, plus of course, child benefits).
The problem is that I know they have a foreign saving account (at least 20 thousand euros) in their home country and a house rented that earns money.
I am completely furious.

I have never applied for benefits so i do not know how it works, but weren't they asked to declare they had not any other property abroad? Does the HMRC checks everyone' s foreign accounts before giving themoney?
So annoyed and disappointed.

Maybe they have declared the properties. Have you asked ? If they haven't. Maybe you should gently let them know what could happen if they get caught. They may not have all the facts.

Thanks YouRat,

the fact is that i actually do not know how they get caught. Will they need to be reported or does the government do spot checks?
If they can be caught only with someone reporting them, they will think it is me.

Imo it doesn't really matter how they gather their information. The fact is that it's a possibility and if they're willing to deal with the consequences then it's up to them.

Do you think they have done it by error?
I am actually thinking that they have deliberately hidden that information....

Personally I would report them, if nothing is wrong then nothing will happen but if the figures are wrong then they will be invited to a taped interview under caution.

I don't care if someone accidentally or on purpose doesn't declare €20,000, it makes no difference at all. It is still benefit fraud.

It doesn't really matter how much you have in savings for tax credits, as long as you declare any interest earned. For the council tax reduction they would need to declare the property / capital. When they move to Universal credit in the future they won't be able to claim it at all if they have savings over 16k.
In my job I see people coming form EU countries all the time and having houses / savings etc abroad. I'm really not sure how HMRC / DWP can know if they don't declare it though.

If recently arrived from an EU country, then they are entitled to child benefit and tax credits if their income is low enough exactly the same as Uk citizens.

Child benefit and child tax credit don't take savings into account.

PersianCatLady
but if i report them will they be told that someone has reported them? Will HMRC investigate even if they do not have details of the saving account (I do not have account number of name of the bank)

Babyroobs
we live in a council where there are UC already.... but the fact is that i doubt they have declared the savings in their country otherwise they would have not got any benefit

thingsthatgobumpinthenightouch
Child tax credit don't take savings into account?????????????????
That's crazy!

Yes it is crazy that tax credits don't take saving into account but that is the way it has always been, you could have 50k in the bank and still get tax credits if on a low income. I'm pleased the system is changing I that respect. Benefits should be a safety net. If your friends are on UC and have not declared their significant savings then they are committing benefit fraud. It's up to you if you want to report them. You can do it anonymously online . Just google ' Reporting benefit fraud'. However as other have said they may not realise the rules, (although with a UC application one of the first questions it asks is about savings over 16k) so I would try to check first that they understand the rules. I am convinced that friend of mine have a substantial amount of money in an African country yet claim housing benefit here as they have one parent working part time on a very low income yet can afford trips back to Africa every year ( I guess relatives could be paying possibly ). However I just don't think about it as it would make me too cross especially when we both work 40+ hours a week.
In my job I see a lot of EU nationals with houses etc abroad. the system needs to change.

No they don't.

You sound very bitter.

Please be careful when believing people I'm so rich back home stories. I got this from my partner of over 10 years till I traveled to his home last year to discover his parents live in a house with a tin roof. More like a shack than a house!! They're wealthy in comparison to their neighbours but in reality not wealthy at all.

user1471462428
Don't worry, I am pretty sure about the quality of their house as I have been there. it is a lovely detached two bedrooms house in a Mediterranean island. They have always told me they have moved here to give a good future to the kids (learning english, going to uk uni....)but they were fine with their everyday life. So, I do not think there is need for benefits....

Therealpipi
Well, bitter....I would not say bitter. Just annoyed of people of taking advantage of the public money.
It is okay if you need it, but they are just taking the....

Sorry for the typos.

Council tax support has an upper capital limit of 16k and the value of the home abroad will be taken into account for the total capital amount.

I'll leave the morality of reporting up to you and other posters.

Does anyone know how many months eill it take to investigate?

Be careful about reporting as they may get all benefits stopped whilst an investigation ta place which may put them in hardship. I understand it's frustrating . Can you talk to them and explain the rules first?

If you are contemplating reporting them, I would NOT have any conversations on the subject, are they aware of the rules etc. as if you do then report them, it might be obvious it was you which I assume you don't want. Without wishing to get all Daily ruddy Mail, I think the system, flawed as it may be, has rules for a reason and it's not for people to choose themselves whether or not to abide by them. I'd report them... if they're legit they'll be fine, and if not, they shouldn't be getting the help anyway!

(Sorry using a diff name to normal as don't wish to muddle with what I normally post on)

Didn't you question the maths behind one retail job plus one weekly cleaning assignment financing a new life in the U.K.?

The problem is that if it is just a genuine misunderstanding of the rules yet they get done for fraud because you have reported them, you are going to potentially feel pretty bad about things.

Babyroobs, I am sorry but I don't believe in misunderstanding.
I mean, I dont know how the application form looks like but how can they not think that if they have a saving account abroad it will not be possible to have benefits?

MaggieFS, will the hmrc look abroad? I dont have any detail of the account.

BabyRoobs 99 times out of 100, I'd agree with you but if they have €20k, PLUS rent from abroad PLUS wages, I hardly think hardship is a worry. (And if they don't, it'll be a five minute investigation.)

This is your friend right?
Yet you would consider reporting them and getting them into serious trouble without warning?
Or your are another goady fucker benefit bashing?