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Hello Rosemary, I am one of the experts on Just Answer and pleased to be able to help you with your question.
This is definitely a Dad's Army, 'Don't panic' situation! She did the right thing by advising the TCO of her partner's starting to earn an income in the UK. The fact that perhaps she should have told the TCO of his original arrival is a moot point. As he was not in receipt of income then it would have been an exercise in administrative futility. He cannot be prosecuted as he received no benefits at that time. My advice would be for her to emulate Brer Fox, 'For he lay low and say nuffin.' No point in unnecessarily stirring the dead leaves here.
I do hope that you have found my reply of assistance.
Thank you for your support.