Failing to inform tax credits of a change in my childcare arrangements

[dragonfly75]

I am feeling desperate and would welcome any advice from anyone who has been in a similar situation to me or anyone who works for the tax credit system.

I received a letter today from Tax Credits saying that my award has been selected for review as the information they hold about my childcare costs conflicts with the information they have obtained. This is totally my fault as I have failed to inform them about my change in childcare arrangements; this was not done intentionally, it is down to my total lack of organisational skills and ability to prioratise!!

I Returned to work in April 2011 on a supply basis. Because my work was not regular, some weeks I would have work, some weeks I wouldn't, I has to give an average estimate of my child care cost, which I did. At the time, 2 of my children went to after school club and my youngest child went to nursery. I provided them with these details.

In September 2011, my 2 older children stopped going to after school club and my other child continued to go to nursery. In Januray 2012, my child obtained the nursery grant, so I no longer had to pay the fees.

Although I tried to call tax credits on a number of occasions to inform them of all these changes, I never got through at the times I called and even though I kept meaning to try and phone them to update them and it was always in the back of my mind, I eventually forgot. I know this sounds like a total excuse, but it is the truth, it is all down to a lack of organisation on my part. As a result I have been overpaid on my childcare fees.

I know I will have to repay the overpayments, but will I be prosecuted for failing to inform them of my changes? It says in the letter that any over payments will have to be repaid and in some circumstances a penalty will be charged. It then says that 'if we supsect you may have committed a criminal offence, we may carry out a criminal investigation, which could lead to prosecution'

I am beside myself with worry and didn't sleep at all last night. I know I am in the wrong for failing to be organised and informing them in a change of my circumstances, but I am an honest person, just a totally disorganised person!! How do they decide whether its criminal or not? I feel sick. There is no way I would intentially defraud the sysyem; I wouldn't risk loosing my children or loosing my career. Have any of you out there been in the same situation and if so, what was the outcome? I would appreciate any replies....

Don't worry, just be sure to haver all the relevant dates & paperwork & then you will have to pay it back. Any idea of how much you owe? If you are still receiving tax credits it will be taken off them.

Think it must be about £6000, not sure????? I am going demented!! I thought when your child turned 3 they would automatically deduct what you had been paying previously as they should be aware that the costs are paid via nursery grant??? I didn't know I had to inform them? I feel physically sick. Have you been in a similar situation? I have visions of being put in prison!!

By the sound of it, you won't be prosecuted. You will be able to pay in bits....I can imagine it happening the way you describe. I hope you can manage to stop worrying soon.

You could phone CAB for advice too.

Thanks for reply. What makes you think I wont be prosecuted?? Honestly I will NEVER make this mistake again!! You know what it's like, it's one of those jobs that I've kept meaning to do and it has crept into my mind every now and then and I've just never got round to it. I'm not looking for excuses, but this is honestly the way it happened, I just hope they believe me. Anyone who knows me knows I would deliberately defraud the system, I am a teacher for goodness sake, so wouldn't ruin my career. The thing is they don't know me and they might just look at the facts rather than the circumstances and think 'she's claiming tax credit for childcare that exceeds the costs she pays' They don't know me personally, I haven't slept a wink....

Hi, I'm a childminder and have in the past had parents who have sometimes deliberately, sometimes accidently over claimed or claimed for children that I've never minded and the sums of money involved have been higher than the amount you might owe. Also know of at least three people who have been caught more than once and none of them have been fined or put in prison. They have just had to pay it back out of their future tax credit awards.

Hope that puts your mind at rest a wee bit.

Thanks MrsCantSayAnything, I might try that later on in the procedure once I've provided dates and invoices.

Do you think it might go in my favour that I have phoned them as soon as I received the letter and not tried to lie by saying they still go there and admitted that the 2 eldest children go to the After School Club anymore and that my daughters fees have reduced?????

I would have thought it would go in your favour as you are cooperating and being honest about your mistake. Good luck.

Thank you Skivvytomany, this does put my mind at rest a bit. That is awful, have some people actually said that you have minded there child and you have never ever minded them???!!! If they weren't prosecuted then surely I wont be??

Thank you

If any more of you out there have advice, or have been in a similar situation I would really appreciate your response. Think I should change my user name from dragonfly75 to 'mum feeling like the worse mum in the world' !!! I feel like I am a total criminal!!!

I have read similar threads about other benefits, maybe you could do a search. One person didn't inform the Housing Benefit people about a change and she just had to pay back the money.
Like everyone else has said surely your honesty now will go a long way to let them see it wasn't intentional.

Hope so thornrose-worried sick!!!

I am in same situation dragonfly. was about £7000!!!! I was repaying them £100 a month although when my wages reduced they let me repay £50 a month. it's hard though as my wages aren't always the same each year so the estimate always ends up I have been overpaid. I really wish I had never claimed to start with. and for the childcare I do pay for as it is a school breakfast and after school club I can't claim as they have no registration number as their a school. so I'm still paying out but they don't acknowledge it.

Thank you Worley- how come you were overpaid? Did you like me not get round to informing them that the childcare fees had reduced?? Did you get the same letter aswell saying that you could be prosecuted? How long did the whole process take before you found out what the outcome was? Did you have to get interviewed or was it all just done over the phone?

Any more help and advice regarding this matter would be much appreciated. I'm interested in hearing from those of you who have experience in what I'm going through. Thank you in advance

I received an overpayment of £800 albeit in different circumstances. It was agreed that I repay it from future child tax credits, but these were stopped this year as my husband now earned over the limit and the goalposts were effectively moved.

They wrote to me demanding the full amount and I contacted them. I explained how the situation had arisen and the fact I had two more children placed with me through the courts and they were very sympathetic. They agreed that I pay it back monthly at around £30 per month. They told me my case was what they called an exceptional case. Do try not to worry too much, I know it is hard.

If they took everyone to court who had made a mistake or otherwise with their tax credits the courts would have one enormous backlog.

I suppose so ElsieMc, it's so hard not to worry, I am so mad with myself!! My own stupidity and lack of organisation!! I am disorganised but I'm not a criminal, hope they believe me !!!!!

Is there anyone else out there who has found themselves in similar circumstances? What was the outcome?

Hi, I am in the situation as dragonfly75. All my records were consistent from Jan-Jun and then I dropped my son's hours in July. Being disorganised & having a habit to procrastinate, and like dragonfly after a few attempted calls with no answers, I left my childcare costs overclaimed.

Dragonfly75, I would like to ask:

1. Did you inform the HMRC straightaway OR sent away your contract & invoices first?

1. What was the outcome of your case?

I am worried sick - and did not sleep/have appetite to eat. Thank you all for your time.

When we used to claim child tax credits, we used to write to them if anything changed. Easier, cheaper, quicker and less stressful than trying to ring them up. At one stage they were getting a letter weekly from us!

I do recommend people do letters and send them special delivery as you then have a record.

I think is very unlikely they would ask for penalties. I believe their practice tends to be they will just want the sum repaid unless you had some major huge fraud going on. So stop worrying about it. Think about what amounts you could afford to repay and when and then talk to them about repayments. After every call type a letter, keep a copy and send the original special delivery using their reference numbers on the letter so there is a good written record of everything that is said and done.

Perhaps start a new filing system, diary, list of administrative tasks etc (very very hard when you have three young children and work as I can certainly remember) to keep things organised from now on.

I really wish the state had never introduced tax credits. It is argued Labour did it to ensure most parents in the UK became state dependents in receipt of state aid. I am not sure it has really done anyone any good. Those of us who were parents before tax credits existed in their current form managed okay.

Thank you everyone.