Really worried about tax credits, advice please

[wannabestressfree]

Right I called today to renew my tax credits. Last year I was subject to a check from the compliance team which came out fine. When I arrived at school to get my children from after school care the lady who runs it pulled me to one side and said HMRC had called them and asked about my childcare costs.

I am worried sick as
a. I went back to work in September and my childcare was worked out over 52 weeks and so I am only seven months through. The person on the phone told me this was normal. My costs are huge in the summer holidays and I am yet to have to pay them obviously......

b. I am wondering if its the compliance team again. I called tax credits when I got in to explain the situation over childcare and they said they had no history of a call to the school.

Will they just stop my tax credits? I would be screwed. Also should I phone compliance team or wait for them to contact me?

I can really do without this at the moment. Am at breaking point with life in general anyway...............

Any thoughts would be welcome

Shameless bump.......

Sorry not understanding this, tax credits run april to end of march/beg of april hence the renewal at the moment. You calculate your childcare cost as an average. So, for example if your childcare bill for a school week is 100 pounhds, in the holidays 170 pounds you calculate 100 x 39 weeks and 170 x 13 weeks and divide by 52. You need to do this from sept not sure why youa re on about 7 months in when the financial year has finished?

Because I didn't work the last financial year. I went back in September. When I phoned they worked out my child care costs based on September to September so over the 52 weeks. So when I call I needed to tell them for the costs just for the months september to March?

Sorry I understand now........... feel really thick

Yes, that's right sept to march. My last mat leave I still had to pay my CM a retainer and my dd started preschool before the funding kicked in. My aamounts changed when funding started a term later and also when I went back to work in august. I just rang every time something changed??

Perhaps best to phone them and double check that you have done it right?

If you started work in September, then your child care costs for the last financial year would only be those you expected to pay in 2011/12, so for the months of September, October, November, December, January, February & March.

Using carrielou2007's example figures, then of £100 in term-time and £170 in holidays, and using rough weeks:

September-April

Autumn term (first half) was 7 weeks - £700
Autumn half-term £170
Autumn term (second half) was 7 weeks -£700
Christmas holidays (2 weeks) £340
Spring Term (first half) 7 weeks - £700
Half-term £170
Spring Term (second Half) 6 weeks £600
Easter holidays 2nd-13th April, so only 4 days count for this year (170/5*4) £136

Total those: £3516
Number of weeks: 31 weeks 4 days or 31.8 weeks.
Cost per week: £110.57

September-September

Autumn term (first half) was 7 weeks - £700
Autumn half-term £170
Autumn term (second half) was 7 weeks -£700
Christmas holidays (2 weeks) £340
Spring Term (first half) 7 weeks - £700
Half-term £170
Spring Term (second Half) 6 weeks £600
Easter holidays 2 weeks £340
Summer term (first half) £700
half-term £170
Summer term (second Half) 6 weeks £600
Summer holidays (6 weeks) £1020

Total those: £6210
Number of weeks 52
Cost per week £119.42

In other words, you'd be best to check with them as to how you should have declared a part year, because using those figures above, you are claiming your child care is costing you (say) £110.57 per week, because the summer holidays push up the average, but actually, there are no summer holidays between September and April, which is the period you've been eligible for help with childcare costs.

That's what I am worried about. Feel a right idiot.

My childcare costs are relatively low £60.00 a week roughly based on my sept-march but I received nearly £200.00 a week as the calculation was based on sept-sept calculation taking into account very expensive summer holidays.

I am worried I now owe them a lot.
And they will stop all my money

Oh dear :(

You did realise, I take it, that you were getting a lot more tax credits than it was costing you for child care?

So, the £200 per week - was that just the childcare element, or the other elements (child tax credit, working tax credit) too?

No sorry it was combined. I am a single parent. I realise the assessment is wrong and will phone first thing in the morning to explain. I just hope they are gentle with the overpayment and don't just stop them. I will be in trouble if they just stop.....

I don't think they can just 'stop' they adjust your award to take into account. Obs the amount you get will depend on your income so I don't know about the proprotion for childcare and everything else bit.

Thank you am going to try and sort this out first thing. I will worry myself sick all day if I don't. I really rely on my money just to live.

I phoned up and changed my details. The man was very understanding. Feel so stupid for not working it out sept to march and sept to sept instead. Thing is my new award is likely to be substantially lower as I have been overpaid and won't take into account the summer holidays mega expense. Nightmare. My fault though.

I just hope they won't hammer me too much. How long do new renewals take on average to come through? I feel like I am on death row............

I've just updated my details, and it took less than 2 weeks for the award notice to come through, so hopefully you're not waiting too long.

Had you been putting some of the money aside to pay the summer holiday extra costs? If so at least it means you've got some of that sorted already.

Yes I have :}

I just read the notes and it says they can take 10% if you are getting wft & child tax. This is manageable and it hope its the case. I am not making excuses but my DS is in and out of hospital since September [psychiatric] and I have been all over the place. Its not like me not to GET something like this.

Thanks for advice Rockchick

Try not to worry wannabe - I'm like you, single parent, relatively low childcare costs during termtime, which obviously rise during school holidays. I get my tax credits spread out throughout the year - term time I get more per week than I actually pay, but in holidays I get less if you see what I mean? My award is based over a 12 month period, much less hassle that way than ringing them up every few weeks when it's half term and saying 'my childcare costs are going up next week' then calling back a week later to say 'my childcare costs have gone down again' and all the fuss that goes along with having it readjusted!

They don't have a problem with paying me the average spread out over the year.

No I understand that its just I worked mine out from when I started work [september] to the following september not the september to march [tax year] hence I have been overpaid.

Am upset about it.

Oh ok. Listen, people make mistakes all the time, and it's hard enough being a single working mum without having to fanny about with tax credits and the like! I know how difficult it can get trying to juggle everything, stupid me decided to throw studying for a degree into the mix! Sometimes the reality of all the responsibility being on your shoulders bogs you down, that's normal.

Hope you get it sorted ok :)

Thanks Anna god you have your hands full. I suppose I just wanted someone to say ' yes you have been silly but it will all be ok and you won't lose all your money every week now'

I hate sorting tax credits, always makes me feel nervous and worried. I hope my notification comes soon.

I claim an average, and my childcare costs can be irratic due to sometimes needing afterschool club and sometimes not, and cannot predict when this would be. The person on the phone told me that I should work out what I 'expected' to be paying over the year and if it was substantially different at the end of the tax year to what I predicted, i should let them know when I renewed so they could re-adjust, which, I guess is now.

I also was told, in January 2012 to work it out by working it out over 12 months, in fact he did i for me and gave me a rough figure, which means, as I dont pay for childcare in holidays, my figures are underestimated, not over-estimated for the last 5 months (when childcare started) as I took into account (the person I spoke to took into account). I wonder if they will pay me back the last 5 months owed due to misinformation, seeing as you can only claim money back for I think it is one month? i doubt that very much .

I hope you get it sorted, I am sure they will adjust your benefits accordingly over the year. Last year they informed me they overpaid me by £800, and this would be taken back over the next years monthly payments. As it happened, they actually underpaid me by £800, but I would think that is how they would recoup the overpayment.

Yes a helpful person assisted me but unfortunately over estimated and didn't take into account the seven months bit.

Normally they do pay back what they owe you. Fingers crossed for you :} I over estimated what I would be earning and was told they owe me money back for that - which will no doubt be swallowed up what I owe them. Swings and roundabouts......