Shares whilst on benefits

[hanni1990]

Hi I have shares in a previous company I worked for, these were employee shares I didn’t buy them. When I applied for UC they weren’t over the 6k threshold so I didn’t declare them that was in 2020 I just thought they’d help on a rainy day. In September I decided to sell my shares to help with purchasing a house and the date I sold them they valued 8900. I thought you were allowed up to 16k in savings and money towards a house purchase was disregarded for 6 months so again didn’t declare it. After chatting with a friend and a bit of research I’m now absolutely petrified that Iv committed fraud an I’ll go to jail. I have now reported on my journal and explained but I’m so scared and can’t sleep because of it can anyone advise what will happen I’m absolutley petrified

You've reported yourself so just hold tight and see what they say.

You know for a fact no-one is going to jail over this so don't wind yourself up about that.

Unless you've been prosecuted for fraud in the past?

No idea regarding benefits but did you check if you need to pay Capital Gains Tax on the sale?

You should have declared them at the beginning.

money set aside for the purchase of a house is only disregarded for a period of time if it comes from a house sale. Not shares etc.

The shares were tax free and looking back in 66 months since I stated claiming Iv only been over the threshold for about 50% as the price share dropped and rose, I didn’t even think to check them until I found a property and sell them. I have now reported it and explained, I genuinely thought I could have up to 16k in savings and now I’m terrified to the point it’s making me ill

No never I think that why this feels so scary, I’m not very clued up financially, never really had money as such and just got by. Now I feel like a fraud and they’ll think that I have done this on purpose, I’m just so worried about they’ll do

Thank you for your reply yes I understand, I didn’t declare it as I didn’t see it as savings when they landed in my bank as I had to pay solicitors fees and the rest was for the deposit so I thought the disregard rule applied as I was purchasing a home. Honestly I feel so stupid and now I am petrified Im going to be taken away from my beautiful babies. I suffer with extreme anxiety and now can’t stop worrying about this

I am a lawyer. I can not envisage a prison sentence for something like this if the figures are as you describe. You are most likely to just have to pay what you owe. Worst case you could be prosecuted but seems quite unlikely.

And even if you were prosecuted, this sounds a long long way off any kind of prison sentence.

You can have up to 16k in savings. Once over 6,000 they reduce your UC entitlement but its by pennies. For every £250 over 6000 they will reduce your UC that month by a certain amount. I think its about £4 and its only on the months that you will have had more.

They will just ask to repay a portion and if need be you can do it on a repayment schedule.

But if the shares were worth 8,000 max ish then some months you will have got about £35 a month too much UC? So not loads to repay.

I was overpaid a benefit years ago. I was advised to offer a small amount each week (to be deducted from my future benefit) they accepted the small amount and I hardly noticed the reduction in my benefit

Yes its £4.35 per £250 over £6000, so there will be an overpayment to repay. Chance of a civil penalty added for not declaring- sometimes £50, sometimes more. That depends on whether the decision maker decides it was deliberately not declared. OP you can only await their response, but there will at the least be an overpayment to repay.

They will also apply any allowed disregards under the capital and savings rules- if applicable; although that doesn't seem to apply here. You certainly aren't facing a custodial sentence, however. I can't stress enough as a benefits specialist how declare, declare is so important at the start and throughout a claim. Even if you think its not relevant you declare anyway. I know that's now hindsight but I see a lot of this.

Does anyone know what I will have to provide so I can get it ready ?

I would have available all and any account statements bearing your name in case they ask for these- this means any and includes current, savings, credit union, PayPal, joint or sole accounts, applicable to the period in question. Any paperwork relating to the shares themselves. Any paperwork showing how you used the money, specifically any above the £6k lower capital limit. May not all be required but I would prepare these in case. Edited to add: the more quickly you can provide any requested evidence the more quickly they can decide on the outcome, eg overpayment repayments etc and the more quickly you can put this behind you.

I agree you probably shouldn't worry too much. Easy to say I know. Agree with pps that you'll most likely just have to pay back any overpayment, especially as you've self-reported. AFAIA it's on a sliding scale between 6k and 16k, so the amount you are dealing with I would think not be too horrendous. Plus you'll be able to agree a repayment plan.