Shrewsbury car wash man was overpaid more than £8,000 in benefits

Michael Broxton operates Valet Magic Limited in Shrewsbury. Telford Magistrates Court was told that the 32-year-old correctly applied for and received council tax and housing benefits when he was on low income and a minor partner in the enterprise.

But when he later took it over as the sole trader, his take home pay improved.

Broxton admitted two offences of dishonesty at the hearing on Friday.

He had failed to notify Shropshire Council that there had been a change in his circumstances and that his entitlement to council tax and housing benefit might be affected.

Mrs Abigail Hall, prosecuting, told the court he was allowed the benefits on the basis that he was self-employed at Valet Magic Ltd where he had a 30 per cent share and received a low weekly income at the time.

"Information became available to the council that the defendant failed to tell them when his take home pay from the business increased from May 2012 when he became the sole trader. His earnings increased significantly from 2012 to 2015," Mrs Hall said.

She said he was overpaid £7,513.24 in housing benefits and £662.61 in council tax benefits during that period.

Mr Paul Nicholas, defending, told the court that Broxton, of Oaklands, Bicton Heath, had not intended to defraud the council.

"It is unfortunate that he has been caught out in his way. His application was genuine from the outset. Unfortunately there is no date recorded of exactly when his income significantly rose.

"He was working as a car valeter earning a small amount. He and his business partner went their separate ways. He then moved premises and through hard work the business gradually over time grew bigger.

"He knows he should have realised that his income had passed the benefit limit and that he should have been more alert to it as he was doing a lot better than previously. He was caught up in running the valeting service."

Mr Nicholas said since the single man had been interviewed about the matter he had repaid the council tax benefit owed to the authority and was now repaying the housing benefits sum at a monthly rate.

For the offences the magistrates gave Broxton a conditional discharge for two years. He was ordered to pay £185 costs and a victims' surcharge of £20.