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Tax credits overpayment - Help!

(2 Posts)
arabellafigg Tue 28-May-13 14:40:51

I received a letter from tax credits asking for all bank statements and childcare bills for the tax year 2012-2013. I sent in and signed my renewal and now, seeing the childcare bills printed off from last year, I see that I may have been overpaid on the childcare element as I was claiming to spend £50 a week on childcare but actually paid about £30.

There is a box where I can add 'additional comments'. By my own calculations I am liable for a fine of £300 and can be asked to overpay £1,040 in credits paid to me. I am really not in any financial position to be able to pay this back as a lump sum. Is it best to admit my mistake to HMRC when sending in all this paperwork?

I have phoned them to advise that this years payments for childcare will go down. I based my renewal for 2012-2013 on the previous years childcare costs when dd was not in full time school so I can see what has happened.

I am really worried about this, I can't afford for my tax credits to stop. How lenient are they? Has anyone had similar problems. This has never happened to me before. HELP!

clare8allthepies Tue 28-May-13 16:52:54

Hi, what they will do is look at the evidence you have sent them and amend your award to show the correct amount of Childcare. Your award will be recalculated and you will be sent an award notice showing the new entitlement for 12/13 and the amount of the overpayment.

The overpayment will be collected from your ongoing payments, usually at 25%.

The penalty is up to the officer checking the claim, don't know quite what the criteria are but I'm pretty sure they have to think that you have deliberately over claimed

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