Inheritance and tax credits

[TooMuchInfoOnTheInternet]

Will also ask our solicitor re: form but I have found asking here very useful before.

I inherited a large sum (several £100K) from my dad's estate in October 2018. Prior to this I had been receiving a small amount of the child tax credit element. I had also been doing overtime and declared this in September 2018 and the tax credits stopped. Fair enough.

I haven't declared the inheritance because a) I wasn't receiving anything anyway and didn't intend to claim again b) it's not technically income as I understand it, although any future interest will be classed as income (and should be declared).

I recently received updated payment information which confirms the payments have stopped and thought to double check I don't need to declare the inheritance and note I should declare income from estates. Now I'm nervous I haven't declared!

The estate isn't completely finalised (awaiting potential critical insurance payout) so I don't have the R185 to send HMRC and I can't see where else I can declare it online.

WWYD? Wait until the annual check and declare then or write a letter setting out the inheritance I have received so far.

Please note again, I don't actually get anything so I'm not engaged in benefit fraud IMO. In fact I owe HMRC (small amount) and will pay this when asked.

I really don't want to spend hours on the phone, I find the phones are never answered!

Sorry this is long. I'm so confused!

I'm confused if you're not receiving any tax credits anymore why would you need to declare it?

Well exactly, but I'm in the system so to speak and I suppose it might mean I owe some additional back payments?

My main objective is to avoid any potential fine for not declaring!

Mmm I if you got the inheritance after the tax credits payments had stopped I can't see why you'd have to declare them

If you have received any tax credits since the stat of this year then when they are finalised in April 2019 you may owe money back . You would need to declare any interest earned on the inheritance over £300 per year so if you have a large sum then it may mean you weren't entitled to tax credits in the tax year 2018-19 ad they may ask for any overpayment to be paid back. If you have several hundred thousand pounds this won't be a problem. It will just be an overpayment, it wont be fraud. Tax credits are worked out on an annual basis.

I'm in the system so to speak and I suppose it might mean I owe some

Presumably the logical solution would have been to get out of the system?

Just phone and close your claim

If you have already closed the claim then I’m not sure why you would expect to hear from them. I was in similar circumstances, phoned after receiving inheritance and cancelled my claim. I had a small repayment to make which they told me about on the phone,I replayed it and never heard another thing