Why did your friend make the accusation?
Was she just staying with you and were you are staying in the property at the same time?
May we have the detail please?
Presumably, you can prove that you lent her £5000 3 years ago with the bank statement or suchlike. Then, it would be easy enough to prove that if she gave you £3500, in was a lump or over a period of time and that you had to lie to her to get the money back because she had not paid you over the last 3 years
Provided you can prove £5000 loan and she cannot prove that she paid that £5000 and this £900 per month was in respect of rent, then all well and good.
The problem is being a full-time carer for your mother and not being in the property and its those periods of absence which can be problematical. Of course, the local authority may take the view that this was rent which he paid and not repayment of the £5000 and that she still owes you the £5000! It wasn’t a good idea to make the rent arrears story up.
However if there weren’t any rent arrears, that does support your case.
There is nothing wrong with having someone stay with you in your council house. However you’re not allowed to have a lodger unless the local authority agree. It comes down therefore to whether the £900 was repayment of the £5000 whether it was rent. That will depend on the evidence you have with regard to the loan.
The fact that the police were called assists you because if she is a tenant that you are subletting to you cannot get her out without a court order and the police would not get involved. That is why she has come up with this story later on to try to drop you in it it seems.
What you need to have is proof that this is your only address and invite them to interview your mother to confirm the limited number of times that you stay with her.
Make sure that you have your bank statements ready to fill the £5000 loan. Although you sent the text saying you were in arrears of rent, the local authority will know that was a lie because you were not in arrears of rent I assume.
If they are coming to interview you at the house, they will be looking for signs that someone else has been living in the property. If they were really serious with this, they would be asking you into the council offices for an interview under caution. However you need to treat this as seriously as you possibly can. Be as helpful as you can but don’t volunteer anything, just answer the questions.
Can I clarify anything for you?
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You just need proof of all the money that you’ve let her have.
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I need your telephone number in contact details please
I have to leave the office at 1645 will be available on the number which I gave you, until 5 PM on the afterwards, from 7 PM until late.