 UK Question. When do Tax Credits send out renewal forms? |
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To Crispy, thanks for your input but I do work as a full time mum and housewife and my husband works 45 hours a week. We get £40 a month from tax credits as a top up,... |
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Cindy | Will my friend go to prison? |
My friend has had a letter from the tax credits saying they want proof of her childcare costs, the thing is her baby doesn't go to childcare and hasn't for over a year and she rung the tax credits and told them this. But it seems they have been paying her for it still, in addition her P60 wages is about 6 grand more than what she advised them because her husband left her in the May so she had to go full time at work in order to be able to pay the bills, but she never told the tax credits (although they had taken into account her husbands wages which were no longer coming into the house) her husband didn't end up coming back until Christmas (because he missed the kids the pig)
So now she is panicking that they are going to send her to prison
Do you think if she offered to pay whatever she owes them back in a lump sum (she said she will get a loan if she has to) then the tax credits won['t send her to prison, as she is very very worried and hasn't been able to sleep :0(
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er no weezyb, she has not been abusing the system, she told them about the childcare and they must not have updated their systems as per usual |
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K B
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Unless she's done this kind of thing before then no, she will not go to prison. And tell her NOT to get a loan; there is no need to. If she gets a loan she will have to pay interest on it, but she can make a monthly/weekly arrangement direct with the Tax Credits office which will be interest free.
If she genuinely did tell them about the changes, and therefore it is their error, then why is she feeling so guilty?? |
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jacqueline e
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A lot of people have been overpaid by the tax credit system, including me, they have been very understanding to me as my overpayment was their fault. However they do have a system for repaying what you owe in instalments. It is probably best to ring them or write to them, explain and offer to pay it back. They will probably look kindly on a genuine offer of retribution. |
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ALLEN B
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No. but she will have to come to an arrangement to repay the money.
Don't get a loan, just make a sensible offer of weekly payments |
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fanella
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nah not at all they will look at her income and take a reasonable amount back each week for what she owes
tell her to stop worrying the tax credits have messed up big time loads are over paid but they can only take it back at an affordable amount |
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Big L 266
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Hello.Please advise your friend to contact the Citizens Advice Bureau on Monday as a matter of extreme urgency. They are the best people to help in respect of tax credits and custodial sentencing. If your friend puts off going, she will simply make an already bad situation worse.It is not in her long-term interests,or that of her family to delay starting to find a remedy.
All the best, Alan L. |
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jeanimus
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She needs to tell them straight away about all the changes and let them work out how much she has been overpaid. She will probably have a massive bill to pay, which they should take out of any current claim if she's entitled to anything. I doubt if shell go to prison.She shouldnt get a loan if they will accept installments, cos shes just adding to her debts by doing that. |
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Johnny
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No they'll usually just cut her benefit in future until she has repaid it. |
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absolved lemon
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you cant go to prison for being in debt, those days are long gone. embezzlement and insider trading corperate fraud are prison worthy crimes but its only a soft sentence in an open prison. your friend will not go to jail. she may get a county court judgement and may have to pay a minimum amount of money untill the debt is paid off. i owe the working tax credits people 88 quid, they can go fuc'k themselves i aint paying it and i'm not worried. i've busted my as's off for 20 years. they can't touch me. tell your friend not to worry she wont go to prison, she can agree to pay a minimum amount back each month, might even be 5 quid a month. |
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notmarriednochildren
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Rosie C - you do not understantd the UK tax system and tax credits, so it is not appropriate for you to talk about Cindy's friend 'being audited' whilst you are trying to be helpful, you may confuse the situation and cause more stress by giving information that is not relevant.
This is clearly a question directed to the UK questions forum. |
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firefly
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If this is genuine as you've stated she must contact them immediately, being open and honest about her circumstances. They'll probably make a lot of hot air, and settle for an arrangement, that suits all to reclaim the excess payments. As for going to prison I wouldn't have thought so, the cost with everything is enormous, and they wouldn't get their money.
The answer by "colin s" an employee 'DWP', well ignore him, these are the people who can not get their own accounting house in order, cheques returned in correct envelopes to cover over-payment of my recently deceased mother, one sorted other allowance, a total of six letters each two days apart requesting/demanding this be paid, excuse well different depts.
So if it's genuine I don't think your friend has to worry about prison. |
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xxSHORTYxx
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they will class it as an overpayment and take deductions each week i bet. they are not as harsh as income support the tax credits, so i do hope they fall easy on her so the por girl can sleep at night. |
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SiD
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(Well Colin it's a shame your department didn't try creating a system which you don't need to be a forensic accountant to understand.)
I suggest your friend goes to Citizen's Advice and gets them to help her inform the Tax Credit people of exactly what happened when so that they can recalculate it all and arrange to recover any overpay at a reasonable rate. It is highly unlikely that she will go to prison even if she had committed fraud (not that it seems that way from your question) and since she has tried to keep on top of things I'm sure she has nothing to worry about. |
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CHARISMA
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no they will just deduct the amount she owes from any future payments, so she will not recieve any credits untilt he over payment has been paid back.
she wil not go to prison, that is for serious benebfit fraud, which this doesn't sound like at all. |
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David T
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There are a number of issues in this question. First off your friend is at fault for not keeping the tax credits people up to date with her circumstances.
First the easy one the P60 figure in the tax year 2006 -2007 you were allowed to have your salary changed and there was a band of £25000.00 before it would affect the award. So your friend MIGHT not be penalised for this. However, you are supposed to advised the tax credits people within one month of a change of salary, so if she did not do this could be in for some penalties.
Second thing is that when her husband left again should have informed the tax credits people that the houshold has broken down, she would have then been able to claim on an award of her own. Again you have one month in which to inform .... then when he came back that single claim should have been cancelled and a new joint claim started.
Now to the point of the question. In my time working for HMRC I have never repeat NEVER seen anybody go to prison for not keeping their tax credits up to date.
Your friend could end up with an overpayment of tax credits, and if she still has an award running this will probably stop until the overpayment is cleared...... usually that it is it. However, if the stopping of a tax credit claim puts your friend into hardship she can ask for a reciew of circumstances, and to reinstate some of the claim.
If the overpayment can not be recovered by an ongoing claim, your friend will be asked to repay the overpayment. Your friend can ask for this to paid back in installments depending on her circumstances. Usually if the debt is cleared within 12 months then a direct debit will be set up and payments made with no further questions asked usually.
If it takes longer than 12 months then your friend will be asked for Income and Expenditure details of the household (ie her partners income will also be taken into consideration) and from that a disposable income obtained. The Revenue will then take a proportion of that disposable income to start clearing the overpayment and it will usually be reviewed in 6 monthly intervals. You could be charged interest on the amount you owe until the debt is cleared.
If after that an arrangement can not be mutually agreed it will be put into County Court, your friend could end up with a CCJ which will crash her credit record, but the court will decide how much she has to pay each month. Thats it usually, highly almost impossible for a custodial sentence.
If your friend really wants to clear the debt if any in one go then the Revenue will be delighted. The main thing now is get your friend to start talking to the Revenue NOW either on 0845 300 3900 which is the tax credit helpline, or on the number given on the letter your friend has recieved from the Revenue. The more you talk now the better it is in the long run.
Hope this helps and stops some of the worry. |
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bunjijuan
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SHE MUST GO TODAY TO THE TAX OFFICE, IS BETTER SOONER THAN LATER.
THERE ARE CONCESSIONS FOR HER SITUATION AND ALSO FINES FOR USING THE MONEY THEY SEND HER AND SHE DI INT RETURN.
BUT NOT ALL IS BAD NEWS, TELL HER TO GO TODAY AND TALK TO SOMEONE UP RANK NOT WITH JUST AN OFFICE WORKER, SHE CAN MAKE AN APPOINTMENT BASED ON THE LETTER. NEVER OFFER TO PAY AS A LUMP SUM, IS AGAINST HER, SHE USED THE MONEY TO LOOK AFTER HER BABY. GOOD LUCK |
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Paul S
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if she can prove she has told them about the childcare and they have a record of the phone call then she can argue that it isnt her fault but she will have to fight it. as for the P60 issue, yes she may have to repay some if the extra money she is earning is more than what was stated as her husbands income. if it is less she may be entitled to more. if she owes money then this is normally done by reducing the current payments she receives, however im sure they will let her pay a lump sum if she has the funds to do so. but bear in mind that she will be paying interest on a loan, but wont be paying any on receiving reduced payments from the tax credit people.
she wont go to prison as this isnt such a big issue as it happens all the time where tax credits people mess up and make you look like the bad guy.
at the end of the day, your friend wasnt to know that the moneys she has been receiving are incorrect unless they provided a break down of what was included in the payment. As long as she told them asap, then its not her fault. |
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buggerlugs
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this happened to my friend and she was overpaid about 4000 in tax credits(not exactly the same circumstances as u though) there were no courts etc involved they just took a massive chunk from her each month till paid x |
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pvanderstighelen
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the answer is no ..I was overpaid tax credits through no fault of mine and hadnt up dated my info and they gave me year to pay off in instalments just speak to them they will help no need to panic and as for colin the dwp is an absolute nightmare me full time carer but on the sick but still have to care for that person and get nothing for looking after the person 24/7 so who is the ones defrauding ........ you must know people on benifits cant defraud anymore its imposssible ......not that I would .. |
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dels replies
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She may be found guilty but there are extenuating circumstances.She may get fined and possibly have to repay some of the overpaid money,which might cause her financial difficulties,but I think it is unlikely she will be sent to prison,especially as she has young children.I am assuming she does not have any convictions for similar offences previously as these would be taken into account in determining the sentence. |
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Stuffy
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lifed off iwould imagine. hope i get a best answer ay cinders |
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george c
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It all depends but Dont think so They will probably recover the costs there might be a small fine |
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My name's MUD
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In the UK the only debt you can go to prison for is called COUNCIL TAX.
Now if your friend goes to court on a fraud charge then she will need to explain all the circumstances to a judge.
A court hearing is unlikely, what will more realistically happen is that they will adjust the payments to suit any over/underpayments. At worst this will mean that there may be no further payments, or sometimes they ask for some of the money back.
It is best to communicate with them and just ask them to re-calculate based on the true facts of the situation.
Claiming the childcare element of the tax credit system, when it is not being used, is actually fraud. They usually write to the childcare provider and they confirm they care for the child. So who has been looking after the child?? A grandparent does not count, as the childcare provider has to be, a registered childminder.
Prison is highly unlikely, in fact just the figures need altering and the dates of the changes declared to the tax credit office. |
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jay j
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no tell her to stop worring has she been to their office and told them now if not tell her to do that straight away and how does she know she owes all that have they told her because she would have been entitled to extra money off them because she was bringing up children on her own and in full time work and she must make it clear to them that she did ring to tell them about all the changes but obvisly noone took any notice of her so its not her fault and tell them she done her job pitty they didnt do theirs tell to be straight with them dont be afraid or they will walk all over her and you say her baby wernt going to child care who had this baby while she worked she still had to pay somone to look after this child |
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weezyb
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I think she is going to end up with a very hefty bill.
but then again she has been abusing the system and knows that she has so unfortunatley it could end up that way. |
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rosieC
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There are a lot of issues involved here. Technically, you're allowed approx $4,000 a yr per child for childcare or babysitting. The childcare should be rendered in the babysitter's residence. And they usually or may ask for the sitter's social security. And if she's working full time, and has a young child ; it's naturally presumptive that the child needs childcare whether full time or part time. or even after school.
The IRS can be so strict and enjoy inflicting anxieties in the working class. In order to pay those high tax dues; you need two income households. The harder you work in order not to become a social liability and to better yourself and your standard of living; the more you are penalized by these taxes.
The higher your income level, the higher tax brackets you are levied on. This is very hard on the single parent or mother.
And England is notorious for outrageous taxes. I guess, they need to extract more money from the masses in order to maintain the royalty in the lifestyle they are accustomed to.
.
Tell your friend, that evading taxes for a small wage earner such as hers is not a legal reason to be sent to jail. After all, who will take care of the young child. And if sent to jail; another potential taxpayer would be prevented from paying her tax liabilities. Besides, she might become a burden to society should she rely on the gov't financial assistance programs. Both Canada and England have child subsidies provisions. I lived Canada for two yrs. I have also been to London several times.
Only the very, very rich who makes large sums of monies would be in jeopardy of being sent to jail for tax evasion just like Leona Helmsley. Or even Martha Stewart for insider trading.
No, the IRS won't go after a poor mom who's trying to make both ends meet esp when the husband flew the coop and reneged on his financial and family obligations It would cost them a lot of expenses to go after small fry. There are even rumors that the IRS is not owned by the gov't just like the Post Office. I know that latter for a fact here in the US. That's why the Post Office can afford to send its employees on an all expense paid trips or junkets. and they frequently raised the price of postage. They sponsor a lot of sport games and events outside of the US. They do not have to answer to any gov't regulatory system. They park their vans anywhere they please.
All yor friend has to do is prepare a lot of documentaion and show proof of her full time job; i.e.; her paystubs. . And if she has a young child; naturally it's a fact that the child needs childcare for the mother to be able to survive. and work.
I was a widow and a single parent for 10 yrs when my husband died . My children were only 8 and 3. I struggled and made it. Of course my kids had to have childcare; as I worked long hours.
Thus, tell your friend don't even consider getting a loan. That's like jumping from the frying pan to the fire. Let them audit her. Do not allow them to bully you to a corner. I have had run-ins with the IRS in the past. I kept all my tax records together. You should keep them for 5 yrs; as they might audit you in that time frame.
And let me reiterate, the need for proper documentation and tabulation. As soon as my husband died, they kept sending me threatening letters. Eventually, I went to their office for a scheduled auditing. And as it turned out; instead of me owing them some money; they end up paying me.
She should and could claim as head of household and get better tax breaks. Tell them the truth, that she couldn't possibly pay them as they required. or she might even become a public charge.
I certainly hope this allays her anxieties. Furthermore, advise her next time, that Nursery care, Preschool care and even Kindergarden.; are all tax deductible expenses. rather than plain babysitting.
. |
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Jack Dawson
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thanks god, in my country there is no taxs ;) |
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INACTIVE
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For her sake and the kid's sake I hope she doesn't go to prison but she is "messing" with the government here and that's a federal crime in many countries. Regardless if she goes to prison or not, it sounds like she wants to blame everyone but herself. That's denial. No matter how you look at it you're friend is still guilty of tax evasion and people who lie, cheat and/or steal deserve their fate. You can be there to support her but realize you are judged by the company you keep. In addition to legal help, I would suggest emotional help for your friend as well. This is not really a "little white lie" we are talking about... six grand is a prosecutable offense. Also good luck with her getting a $6K with a tax agency breathing down your back. Those are the candidates most likely to file bankruptcy... and loan agencies know that. I do not want to be mean here... just practical. It's time for professional help (in more ways than one). |
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colin s
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As someone who works for the DWP people who commit benefit fraud deserve all they get. They are stealing money from every tax payer in the country.
Don't expect ant sympathy from me. Also your friend has defrauded the tax office. What will happen is that to recover the overpayment they will cease paying tax credits until they have recovered the overpayment.
The fact that your friend told the tax credits that her child was not having any child care did not seem to stop your friend continuing to take the payment when she could so easily have returned the money.
Having received many thumbs down it is obvious that there is an ethos in this country that thinks it is absolutely OK to fiddle benefits. It shows what a strange society we live in. |
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