savings and income support

[tiny-tidawee]

It has been discovered via HMRC that during my claim for income support over this last year, that there was an old bank account containing under a thousand pound (from many years ago, completely forgotten about)although this is under the £16 thousand limit for savings, what will I be prosecuted for and will I be looking at a custodial sentence?

[factor-fiction]

The HMRC may find it difficult to imagine that anyone could completely forget about a bank account containing so much money, but on its own I can't see a prosecution arising providing it doesn't bring you over the £16000 limit and/or affect your entitlement in any way. They may dig around though and ask whether you have any similar acccounts

[gingejbee]

I agree - this situation will make HMRC more inquisitive about you and yours.

[tiny-tidawee]

Thanks, for replies, I do not have any similar accounts, although i do have one basic account with a pound in it, which is not used, it was opened some time ago as after an appeal, DWP owed me a backpayment of about 2 thousand, and they said it was too much to go into my post office card account (oddly) and that it had to be put into a bank account, so that is essentially what it was used for. I have never declared the pound in this account, although they would know about it as that is where their cheque went into, this was way before this current claim. i have been told they are interested in transactions in my very old account mentioned above - (that they have discovered) from the date of a year ago to now, so then there being no activity, would that be the end of it? or would they decide to look further like ten years back and look into the account too,(the pound one) which was used for one transaction, their backpay cheque owed to me. And sort of if they can't 'get me' on the first accusation then 'do me' for the other (the pound in an account) Also the pound in that bank account means I am a customer and means I can pay bills there in that bank which is why it remains in there., by the way.

[factor-fiction]

I'm sure you know that they are not going to "do you" for pound.

They may want to look further back if they find out that you had a significant acmount of undeclared savings previously.

Just be open about things and then it will be sorted quickely and you can stop worrying about it

[sara3]

I can't see a situation where anyone would find out about an account with £1000 in it. are you sure?

who has contacted you, and what have they said?

[tiny-tidawee]

Thanks for replies: who has contacted me and what have they said, - it was dwp, an officer came around, I forgot to ask for their ID, i'd had a letter saying that a query had arisen regarding my benefit, they came and said ok the HMRC have told us that you have an account with some money in it because all our computers are connected, blah blah, etc. I was asked to sign a statement that they had written, but said i'd like a third party involved, re advice, they tried to say I wouldnt need to and just to sign.I havent. Also with the pound account I meant that they could say aha! gotcha! you have not mentioned this account on your form, and then they try to do me for hiding deliberately an account or something.?

[sara3]

that won't even be a fraud investigator.. probably a compliance officer. anyway, if them's the facts, I don't see it going any further.

lucky you, forgettting you had a thousand pounds!

[themas]

1. You are supposed to declare all savings or bank accounts. The investigation is because you didn't.

2. But if your savings were always below £6000 (there is a sliding scale reduction in benefit between £6 & £16000) the savings would not affect your benefit level.

3. Once they have the facts (i.e. the details of money in the accounts at various times in the past) they should drop this.

4. If you want further advice go to your local CAB.

[tiny-tidawee]

thanks for replies, : sara, it was a 'compliance' officer, yes...

themas:regarding CAB unfortunately it is nigh on impossible to get a slot,and they are understaffed plus nobody specialising in this at all where I am. will update as the situation if or when progresses.

[dzug2]

The daily limit you can take from your card account is low - maybe that's why they don't want to put a large amount in it as you wouldn't have the cash straightaway