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Original poster

I've messed up and don't know what to do

30 replies

Onelastgo22 · 09/02/2022 18:58

Hi everyone,

I'm hoping for some help. Dh and I seperated last year and he moved out in July.
We have a joint claim for child tax credits.
I forgot to tell ctc that he moved out. I've been reminded as I got a reminder to submit his final end of year earnings for 2020/21.
It turns out he lied to me about what he was earning (to keep it to himself) and as a result, we have been overpaid by quite alot and what I receive has been reduced by £300 per month! I am screwed until I find full time work, which I have been applying for.
I don't know what to do now. He gets a permanent address in the next few weeks.
Do I tell hmrc he left in July and face the consequences or do I tell them he left when he gets his permanent address?
I am worried that they will investigate me or take me to court for fraud as I will lose my job.
Any advice would be much appreciated.

OP posts:
Bedsheets4knickers · 09/02/2022 19:03

I think honesty is the best policy , they'll will have experience in all sort of issues and as you say you are looking for full time work . Make sure you both pay it back equally .

Original poster
Onelastgo22 · 09/02/2022 19:08

Will I get into trouble for not advising them sooner?
I think I will have to claim under universal credit instead as a single claim?
I am just so worried that I will get a large fine or a caution. I work in finance and can't believe I've let this happen. I've had such a rubbish 18 months that it just wasn't on my radar at all.

OP posts:
Bedsheets4knickers · 09/02/2022 19:14

I don't think you will if you explain what's happened. Sometimes life gets hectic and things get missed and really this is your exes fault not yours .

caprimoon · 09/02/2022 19:15

Be honest, do you have proof he moved out in July?
I imagine you're probably entitled to more as a single parent then as a joint claim, how old is/are your child(ren)?

AnotherEmma · 09/02/2022 19:16

You need to come clean and tell them the truth, obviously, otherwise it's benefit fraud.

You will end up with a big(ger) overpayment which will be deducted from your tax credits. Often they try and recoup it all in the same tax year, which means huge deductions, but you can ask them to spread it out over next year's too so you pay it off in smaller instalments over a longer time.

Many people are surprised to find that they are actually better off on UC. So it is worth doing a calculation (use Turn2Us or entitledto) or contacting Citizens Advice - either your local one or the national Help to Claim service www.citizensadvice.org.uk/benefits/universal-credit/claiming/helptoclaim/ - and asking them to do the calculation for you. Tax credits overpayments will still be recovered via deductions to your UC. But again you can try and negotiate, and citizens advice can help you with it if needed.

I hope your ex has been paying at least the minimum child maintenance he should have been paying?

AnotherEmma · 09/02/2022 19:18

PS Did you tell the council that he moved out? You should have got the single person discount on your Council Tax bill (25%).

Seafog · 09/02/2022 19:21

Be honest, and ask them what can be done together to sort it out

GreenFingersWouldBeHandy · 09/02/2022 19:26

Agree with chasing single person’s discount for CTax. But you have to be honest about the rest otherwise it IS benefit fraud.

Original poster
Onelastgo22 · 09/02/2022 19:31

Thanks everyone for responding so quickly.

I think I will get something under uc. I am hoping that when I increase my hours I won't need or qualify for anything as I find the whole process really stressful.

I'm so angry with him. He clearly kept quiet to keep money to himself as the kids and I certainly didn't benefit from it, yet I'm the one that's responsible for them now and I'm going to be heavily penalised for it.

I had been hoping that we would work things out and he would move back in but that's very unlikely now.

To make matters worse, I was responsible for dealing with my dads estate so there have been large sums of money move through my bank account and I'm worried that they will think I've hidden it.

I honestly might just not claim at all and ask to spread the cost of the overpayment.

I'm going to really struggle in the interim period, but can't face the prospect of been accused of anything, or investigated.

OP posts:
Original poster
Onelastgo22 · 09/02/2022 19:31

No I haven't claimed a council tax discount. Do they backdate it?

OP posts:
AnotherEmma · 09/02/2022 19:37

You'll just have to ask them. It's not guaranteed.

AnotherEmma · 09/02/2022 19:38

You really should claim the benefits (tax credits or universal credit) that you're entitled to. It doesn't have to be stressful. Ask citizens advice for help if you have any issues.

AnotherEmma · 09/02/2022 19:40

Another point which I'm not sure about but is worth looking into... when it's a joint claim for tax credits I believe both claimants are liable for any overpayment, so you could ask your ex to pay back half of it (he might say no of course!)

However if you were the main claimant and now continuing to claim, in reality they are more likely to claw it back via deductions to your benefits rather than trying to chase him. You never know, though. I'd ask the tax credits helpline and/or citizens advice about that.

loz12345 · 09/02/2022 19:46

Normally you would be both liable for the full overpayment under the one account number and but you can ask them to split the debt in two so you would be both liable for half the amount as it was a joint claim rather than being liable for the full bill - this will ensure that your ex has to pay his share of the overpayment - I am a debt advisor we see these all the time please just be honest with them about the situation you won’t get in trouble for it, and don’t be too harsh on yourself these overpayments happen even if you had informed them at the time as everything is done by the tax year.

Original poster
Onelastgo22 · 09/02/2022 19:49

Thanks again.

I'm just really worried about my job as I can't have any doubt on my financial judgement, which is apparently pretty poor 🤦‍♀️

OP posts:
Wheresmywoolyjumpers · 09/02/2022 19:53

I forgot to pay tax for a year and a half on a side job I had (didnt make loads from it, and it was very sporadic). Called them, came clean and they were lovely and helpful. Honesty really is the best policy.

caringcarer · 09/02/2022 21:33

Tell them your Dad died and your h left you with kids to deal With it all and work as well. It is less than a year. They will just do an adjustment.

Babyroobs · 09/02/2022 23:02

When he moved out you should have made claim for Universal credits you cannot change the tax credits claim to a single claim.

AnotherEmma · 09/02/2022 23:28

@Babyroobs

When he moved out you should have made claim for Universal credits you cannot change the tax credits claim to a single claim.
Excellent and crucial point Babyroobs, I completely failed to think of that Blush

No choice but to claim UC then. And ask citizens advice for help to see if you can do anything to reduce the overpayment of tax credits. Underlying entitlement might possibly apply but I wouldn't know without researching it. If I had to guess i'd say probably not Confused

oviraptor21 · 09/02/2022 23:39

When did you 'permanently separate'?
There is no requirement in tax credits that you be part of the same household.

www.gov.uk/changes-affect-tax-credits
revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/understanding-living-together/

Original poster
Onelastgo22 · 09/02/2022 23:54

I realise now that i should have claimed uc.

As I said, I'd hoped we would have worked things out.

I lost my dad a few months before he left, the my lovely nanna had a terminal diagnosis and has since passed.

I've been left with 2 additional needs kids and a home to look after and an almost full time job.

I know it's my own fault, but I have barely tread water over the last 18 months. Admin was the last thing on my mind and now, I will probably be heavily punished.

I wish I had never claimed at all.

OP posts:
oviraptor21 · 10/02/2022 00:04

See my post above.
It sounds to me like you envisaged this as hopefully a temporary separation and that it is only recently that you believe this may now be permanent.
Read the link I posted (the second one) which says the separation has to be permanent to mean the end of entitlement to tax credits.

flameprincess · 10/02/2022 00:09

I work on UC, honestly as long as you just tell them the truth now they will just calculate an overpayment of tax credits and deduct it from your UC going forward.

Are you even sure it's going to be an overpayment and you weren't due more as a lone parent? Either way I highly doubt it's a massive amount of difference given that he was working.

AnotherEmma · 10/02/2022 07:06

Sorry for your losses Flowers

Why do you keep saying you'll "probably be heavily punished" despite reassurances to the contrary? You really won't. Especially because a. you were recently bereaved and b. the separation was not yet permanent.

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