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!