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Original poster

Help! I’ve had a tax credits compliance letter and I’m worried

17 replies

Scoobyprincessdoo · 16/02/2019 21:02

Help I applied for tax credits with my partner last year and have been receiving some money each month, the thing is I got myself into debt which I was finding hard to pay back which I couldn’t tell my partner about as we nearly split up before because of me getting into debt before , so some friends said they would pay me to walk there dog and do some cleaning, only thing was they paid the money into my bank so I could pay my bills off now the compliance people want to know about this money and why they were paying it in bank . my partner has just seen the letter and as you can imagine he’s not happy as he didn’t know I was doing these jobs and getting the money he feel betrayed will he get in trouble for my mistakes and will I end up getting prosecuted please help immworried sick

OP posts:
rainbowbash · 17/02/2019 09:10

so you worked cash in hand, didn't pay taxes/NI you were due and didn't disclose your real income when applying for tax credits in order to fraudulently increase your tax credit award.

Surely you were aware that this was wrong - why are you surprised about the letter now?

AgentProvocateur · 17/02/2019 09:28

Yoh know you need to declare your earnings. You need to get legal advice or advice from the CAB. Are they going to interview you?

Babyroobs · 17/02/2019 10:03

I think this will depend on the amount of undeclared earning you are talking about.

Original poster
Scoobyprincessdoo · 17/02/2019 10:32

I was getting £350 a month from friends to help pay my debt so In return I did jobs for them as I can’t pay them off , my partner knew nothing about it and obviously now things are more than strained I’m
Not doing it anymore as my family are helping me out now

OP posts:
NoSquirrels · 17/02/2019 11:08

How long did it go on for? That's quite a bit of money potentially.

Why did you get back into debt again?

TheInvestigator · 17/02/2019 11:15

You can't go back and change it, but you need to accept that what you've done is very wrong and illegal and you've dragged your partner into a situation where he could be prosecuted because his name is also on the claim. You're going to need to accept that you've broken all trust, and you're probably not going to earn it back since this seems to be a pattern with you. If your partner wants to leave, dont guilt or manipulate him into staying. It's his choice now.

Regarding the claim, you have a choice to make. Try to lie your way out of it (don't know how you could do that... say they owed you the money from a loan years ago or something), but lieing isn't really going to work here. Or admit what you've done, give them your correct income and pay back any overpayment. Then pay all your debts off the way everyone else does, by budgeting your income and not illegally claiming.

CameliaCamelia · 17/02/2019 11:17

Jesus that's a lot!!

You are now in more trouble than with original debt! Prob won't do much to you but sounds like your relationship is now in trouble too

Damage limitation.... talk to your partner

Tomtontom · 17/02/2019 11:23

As already asked, how long was this going on for, how much undeclared income was there?

Whilst it's likely you'll have to pay a penalty, prosecutions are rare in these situations. You're going to need to get all your paperwork together and be completely upfront with HMRC. You will get credit for doing so.

Original poster
Scoobyprincessdoo · 17/02/2019 12:24

I got overwhelmed after I had our child and to hide how I felt I spent on stupid things like cataloges ect my partner doesn’t believe in depression or such things as anxiety so I couldn’t explain how I felt so I spent to make myself feel better stupid I know but it spiral out of control

OP posts:
Babyroobs · 17/02/2019 12:30

You will need to explain honestly to them what has happened. Depending how long it has gone on for you could have a significant overpayment on the tax credits. If it has only been going on for a while then you may not have exceeded the 2.5k disregard for tax credits over the year. If you have no other earnings then you wont have been earning enough to pay tax anyway.

Original poster
Scoobyprincessdoo · 17/02/2019 12:30

I’m going to be honest and take whatever is thrown at me I just feel awful for what I’ve done and possibly done in getting my partner into trouble I’m scared I would be thrown into prison I have 2 children and worried what would happen to them
I will not guilt him if he leaves he leaves I completely get that it’s my own doing I honestly thought that as I was burrowing the money that it would be ok ? Naive I know I should of asked but I get bad anxiety which obviously makes things worse and as my partner doesn’t believe in such things so I’m having to hide how I feel all the time I once went to the doctors some years ago for some anti depressants which he made me feel bad at taking and made me throw them away when he found them
Before people have ago more I know now that I have made a huge mistake and wish I would die and make everything better for everyone else

OP posts:
OurChristmasMiracle · 17/02/2019 12:36

I’m sorry but that’s not a small amount of money and you should have declared it.

Your partner sounds abusive to be honest- making you throw away medication so actually him leaving would probably be a blessing.

You will have to pay all overpaid money back but I actually think this might end up being a good thing. Get rid of your partner, speak to step change and get your debts into manageable payments and get back to the doctors!

CameliaCamelia · 17/02/2019 12:38

Taking responsibility is a good start but I would drop the 'woe is me' attitude regarding anxiety/partner disapproving etc

That's always rolled out as an excuse for this kind of thing. It's standard and will do you no favours

Gain strength from this and take a look at your relationship with a fresh pair of eyes

sheepwithoneear · 17/02/2019 12:42

Calm down
It’s not great behaviour but in the grand scheme it’s not that bad.
£350 a month over a year is £4200 - you would it have been earning enough to be taxed.
Go on to entitled to and run these figures in with the rest of your household income to gauge your overpayments of tax credits.
I’m sure it will not be a huge amount - to you it will seem it but in reality it’s not that bad.
Reply to the letter openly and honestly come clean and show mitigating circumstances- the matter will probably be dealt with by way if reduction of tax credits to pay back the overpayment.
It’s not a huge fraud it’s unlikely to lead to s custodial sentence.
Going forward get rid of the arse of a partner your mental health will greatly improve

sheepwithoneear · 17/02/2019 12:43

** you would not have been earning enough to be taxed - personal allowance of £11850

sheepwithoneear · 17/02/2019 12:47

If your household income is £16,105 or below you'll get the maximum amounts above. If you earn above this, your tax credits award will be reduced by 41 pence for every £1 you earn

So for the £4200 of additional undeclared income this would be £1722 of overpaid tax credits in a year or £143 per month

0nedayatat1me7 · 17/02/2019 13:25

£350 a month is a lot of income that has not been declared ! You have lied to your partner. You will probably have your tax credits reduced, to pay back some money into the system.

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