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Original poster

Tax credits mistake.... need advice

17 replies

mslibra2018 · 25/01/2020 09:23

I would really appreciate some advice. Iv made a big mistake with tax credits. I have a childminder for my child who does a few before and after school for me. She doesn't look after other children at the moment just mine. When my child first started going I gave her registration details to Ofsted. The hours and amount I pay never change so when I renew my claim it stays the same. A couple of years ago she mentioned to me that she wasn't going to continue to be Ofsted registered. I didnt realise that made a difference to tax credits I just thought it meant she wouldn't be inspected anymore.
I got a letter from tax credits saying they need to look into my child care costs.
My friend told me it means they will be an over payment il have to pay back since she wasnt registered and possibly a fine and she might be prosecuted too. The last thing I want is for my childminder to be in trouble as she probably won't know iv been claiming tax credit to pay her!
I'm already in an IVA because of debts I got into when my partner left me.

Should I ring tax credits and just be completely honest. I genuinely didn't know I'd done the wrong thing.
I'm so scared. Can anyone please help?

OP posts:

BercowsFlyingFlamingo · 25/01/2020 09:34

It's very clear with tax credits that childcare has to be registered. Did she tell you when she stopped being registered or did she just say she was going to in the future? If she didn't tell you a date or day that she'd done it then I'm not sure you could possibly know she was no longer registered. Can you find out when she stopped being registered? I'd just phone tax credits and be honest with them.

SmileyClare · 25/01/2020 09:41

You can provide Tax Credits with proof that you've been paying for childcare. I think the best thing to say is that you assumed cm was OFSTED registered or that you didn't think it would affect your claim if she wasn't?
I doubt you'll have to repay anything. Especially if you have proof of payment.
If you do, then Tax Credits will spread your repayments out over a long period so you can pay in installments of say £5 or £10 a week..

Your CM might be in trouble though. She shouldn't have been operating like this. She may not have been paying tax on her earnings? Ofsted registering would cost her about £100 per year, she just needs to bloody pay it!

You can't get into debt with Tax Credits just to cover for your friend's mistakes.
No need to be scared. Ring Tax Credits, explain you have been paying for childcare at X amount, can provide proof and can't tell them any more about your childminder's credentials. They'll look into it and get back to you.

Original poster

mslibra2018 · 25/01/2020 09:44

I cant even remember properly.... I just know ofsted had been to inspect her and she said she was going to stop being registered as she didnt agree with all the new criteria. She is an amazing child minder for my child and I dont believe she has deliberately done anything wrong. It's my fault for not fully checking the rules on registered childcare but as my claim and income has never changed I just send my renewal back with no changes.
Yes I'm going to ring them and hope they let me repay a small amount as I'm already in an iva for 4 more years

OP posts:

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General money

Hoik · 25/01/2020 09:44

If she's no longer registered but should be then she's potentially looking at prosecution. There are strict conditions around who must be registered including restrictions on age limits of the children and how many hours can be worked.

SmileyClare · 25/01/2020 09:50

I'm sorry but why are you taking all the blame here? If your friend was previously OFSTED registered then she would know more than you about the legalities of stopping that. She should also know that she wouldn't qualify to be in receipt of Tax Credit vouchers from clients.

She's running a childcare business and should make herself aware of the legislation.

Original poster

mslibra2018 · 25/01/2020 09:51

But if I'm at fault for not informing tax credits it will just mean I have to repay or will they look into her regardless of that?

OP posts:

MimiLaRue · 25/01/2020 09:57

Call the tax helpline and explain. Your worry and stress about this is far worse than what will actually happen. If you can prove youve been spending it on childcare then do that.

STOP worrying about her. If she hasn't registered as she should thats hardly your fault and she might be in trouble. Thats on her. There are rules in place for a reason. You are NOT responsible for how she conducts her business and any trouble she gets into is of her own doing and nothing to do with you. As smileyclare says, if she was previously registered she KNEW about the legalities of stopping it so FGS stop taking responsibility for her mistakes. This is NOT on you.

Quartz2208 · 25/01/2020 10:07

You cannot take money and look after a child in your house without being registered

NeedAnExpert · 25/01/2020 10:10

I have a childminder for my child who does a few before and after school for me. She doesn't look after other children at the moment just mine.

Is that not a bit odd?

Hoik · 25/01/2020 10:26

You can if it's for less than two hours a day however I think the childminder is working longer than two hours a day?

OP, there are two issues here.

The first is that you've claimed the childcare element of Tax Credits when you were no longer entitled to it as one of the criteria is that the childcare provider must be registered. There will probably be an overpayment which they will usually take back by deducting a percentage of future payments if you have an ongoing claim. You likely won't face any further action as it was a mistake rather than a deliberate attempt to defraud but do call them and explain this as the sooner you get it clarified the better.

The second issue is that your childminder is not registered and should be. This is her responsibility not yours and she will be facing prosecution as it is a criminal offence. In addition she will be working without relevant training (e.g., first aid must be renewed every three years), relevant background checks on her and all over 16s in the household, no checks on the suitability and safety of her setting, and no insurance.

MimiLaRue · 25/01/2020 10:28

In addition she will be working without relevant training (e.g., first aid must be renewed every three years), relevant background checks on her and all over 16s in the household, no checks on the suitability and safety of her setting, and no insurance

This. I'd stop feeling sorry for her and start feeling angry. If anything happened to your son under her care she won't be insured!!

SmileyClare · 25/01/2020 10:45

Agree with pps, at worst you'll have to repay back some tax credit, it'll be deducted from future benefits at a reasonable rate.

It's obviously really that you can't claim vouchers for anyone unregistered. Otherwise people could claim that a grandmother doing childcare was being paid or such like.

It's at your discretion to leave a child with a friend or family member who isn't trained or registered but you can't claim any benefits or legal rights.

I get you don't want to piss off your friend and disrupt the current arrangement but as said up thread, that's on her.

If you rely on vouchers then the arrangement will have to change regardless.
Tax Credits may not alert other authorities about her anyway. They are mainly interested in investigating your claim.

IndecentFeminist · 25/01/2020 13:07

I would find proof that she was registered when you started using her, and print out proof of each and every payment. Bank statements etc.

Then call them for details. If they say that she isn't Ofsted registered and as such you're in the wrong, then tell them that as far as you knew she was registered (as per your proof) and that you have paid the declared amount every month.

If she didn't inform you in writing she hasn't a leg to stand on here in terms of proving anything. She should get in a heap of trouble tbh, and you need to stop being so naïve.

This isn't a family member is it?

FabbyChix · 25/01/2020 13:31

When you’re in an iva no debt is repayable to dwp u til the Iva is finished

SoloMummy · 25/01/2020 13:41

I don't believe that she needs to be ofsted registered if only doing 2 or so hours a day. So cm isn't in the wrong.

Ultimately op is asked to confirm re claiming childcare and that includes them being ofsted registered. So she is to blameand responsible as she should have requested the date from which the registration ended. 🙄

itsgettingweird · 25/01/2020 13:49

I agree. Unless you have something in writing from CM saying she no longer is ofsted registered etc and all you have is original documents then you don't officially know.

And you don't have to quote a verbal conversation where she mentioned she may .....

What matters is documents and the contract.

Unfortunately you cannot do anything if tax credits return and say you should have checked yearly etc but I wouldn't volunteer any evidence to the contrary - just evidence you have that she was when claim went in.

Also you are not responsible for what CM has or hasn't declared income wise. She has to deal with that.

MrsWhites · 25/01/2020 13:56

What solomummy said!

They are two different issues here. The tax credits issue is the responsibility of the claimant to check that your childcare provider is a registered childminder. You should have checked OP that your childminder was still eligible before renewing your claim, particularly given that she’d told you she was thinking of giving it up.

Whether the childminder is operating without ofsted approval, insurance etc is a different matter. If she does get into trouble, it’s her own fault. She should have thought about that before operating illegally!

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