I have a gateway intervention interview

Since1981

Hi

I got call and case worker started with that I am committing fraud and lying to DWP and possibly to HMRC about my finances.

This start of the call not only upset me but scared me unnecessarily.

Then the case worker booked a gateway intervention meeting with my and asked me to bring all the HMRC documents, VAT reg, Company UTR, Company bank statements, personal statements etc to my interview.

What is this interview for, have they already decided without listening to me that I am committing a fraud and now just gathering evidence or is it a meeting to give me opportunity to prove to them that I am not committing a fraud.

My accountant takes care of my company accounts and I get paid from my company minimum wage. Sometimes I take dividends and pay tax on that as well. I have contractors who work for my company on project to project basis and get paid as per their invoice. I usually transfer money to my personal account and then pay sub contractor from their, I find it easy this way but trail is available. Is this going to be a problem.

My company account has over 20k available but of course it's a business which needs to have some money available to it for it's function. Is this going to be a problem.

Are they planning to involve HMRC in this as well, because it will be unnecessary exercise and waste of time? My all documentation is up to date and clean.

I am trying to understand the motive and based upon what I mentioned can anyone tell me if I am in trouble with DWP?

Thanks in advance

luvpink

Sorry I don't know the answer but it sounds complicated.

Maybe seek professional advice because it does sound serious.

Albus_Scope

Hey @Since1981 and welcome to the community.

I'm afraid we'd not be able to say why this is happening, but I'm really sorry they've not told you any more details still. If you're claiming any benefits, but having been transferring money into your personal account to pay people, that may have flagged something with the DWP. But if you've got all the paperwork, I doubt it'll be anything to worry about.

Though Gateway Intervention Interviews are usually to see if you're gainfully self employed, so I'm a bit confused here.

MW123

@Since1981

If I were in your situation, I would arrange a meeting with your accountant. Explain the DWP investigation to them and ask for their assistance in preparing for the meeting. They can help you present your financial information clearly and guide you in identifying any unintentional errors. If everything is organised properly and you can show them the information correctly, there shouldn't be a problem.

Be ready to explain to the DWP why you transfer money to your personal account to pay subcontractors. It's important to emphasise that you maintain a clear record of these transactions. However, this practice of transferring money to your personal account and then paying subcontractors from there, while you say there is a clear trail, can raise red flags. The DWP may be concerned that this blurs the lines between personal and business income, and whether it's being reported correctly for benefit purposes. It would have been clearer if you paid your subcontractors directly from the business account, but as long as you have a record, it shouldn't be an issue.

The £20,000 in your company account might also be relevant if you are claiming income-based benefits. The DWP will likely want to understand why that money is held in the company and how it relates to your income and capital. Having a reasonable explanation for the business need for these funds is important.

The DWP might share information with HMRC if their investigation reveals potential tax discrepancies. Since your accountant handles your filings, this is unlikely, but it's a possibility. Remember that the DWP generally bears the burden of proving any fraud. Hopefully, after an open conversation with them with your supporting paperwork, it will all be sorted out.

Since1981

https://forum.scope.org.uk/discussion/comment/992928#Comment_992928

They have asked me bring my business bank statements with me to the appointment and marketting information etc.

Do they keep the statement or just go through them with the claimant and return ? I am trying to understand purpose of requesting the statements, is it to help me to understand my business and expenses, meanwhile also understand my income or they keep the statements for more detailed scrutiny after the meeting?

anisty

They will probably take a copy of your statements there and then and return the originals to you.

I don't know a lot about these meetings but they are to check if you are 'gainfully' self employed.

I did follow someone else's story online and they were just starting a new business but their business wasn't yet showing enough profit which seemed to be causing an issue between them and their work coach.

I would have thought you would be invited to a compliance interview if they were at the stage of fraud investigation - it seems strange they said that to you on the phone.

I think this one will be to find out how much your business turns over as profit and if it is a viable business. Is it well run, are your accounts and marketing info well organised and professional - that sort of thing.

All speculation though - i don't expect anyone can tell you what it's about til you go.