tax credits

[parris]

My young widowed friend works part time and is also receiving child tax credit for her child who is still in FTE. She receives the widows parents allowance too. Since she has only been filling in her total salary rec'd details (from P60) for her income on the tax credit renewal form (a genuine mistake on her part), could she get into trouble for not declaring her WMA payments. She would like to rectify the situation ASAP by repaying the overpaid CTC but is scared of HMRC's reaction. Any advice would be appreciated.

[THECORBYLOON]

If she doesn't tell them the now, she will have more to repay when that fact is discovered. There is something called the General Matching Sevice which looks at things like benefits in payment and if there is WMA and Tax Credits in payment it is likely that at some point that fact will come to light.

It is in her own interest to declare it now and if HMRC considers imposing a penalty, the fact that she owned up will count in her favour.