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Original poster

Tax Credit Childcare fraud

45 replies

sicknotemum · 10/06/2013 13:52

Please HELP!

I have just received a letter from the compliance team at hmrc telling me they are checking my claim for childcare. I know I have done the wrong thing but when my eldest child went to nursery in Sept 11 I didn't let hmrc know and continued to receive childcare costs for 2 children in childcare rather than one. I then rang at the end of august 12 to say that only one child would still be in childcare as the other was ready for primary one. they are now looking for receipts etc to confirm that both children were there and obviously only one child was. I am really scared and I know I have done wrong but has this happened to anyone else? please advise what I should do? x

OP posts:
Northernlurker · 10/06/2013 13:53

Why didn't you let them know? Did you realise at the time that you should have done or were you confused by the fact that oldest child was still in nursery albeit one you didn't need to pay for.

KirstyJC · 10/06/2013 13:56

We have just received a letter from them too, we had one a couple of years ago and it is just routine - they checked our costs and then OKed it, and I'm sure they will do the same for us again this year.

However, as you lied and deliberately gave false information, then I'm afraid you are in big trouble. Sorry, but that's what happens when you lie. You will at the very least be made to pay back the money you shouldn't have had, and if it was going on for a year then I would fully expect you to be fined as well. And rightly so tbh. The notes we were sent say the fine is up to £3000. .

The only thing you can do it tell the truth and pay up. Next time don't lie.

FiveSugarsPlease · 10/06/2013 13:59

Did you lie on purpose?

Surely they'll just expect you to pay it back? Perhaps by taking small amounts from you Child/Working tax credit each month/week, until all debt is repaid.

Northernlurker · 10/06/2013 14:01

That's very supportive Kirsty, well done. I'm sure the OP won't be terrified by your response at all. Hmm

OP - don't panic!

KirstyJC · 10/06/2013 14:01

Five - our letter says if you lie on purpose then you are fined as well as having to pay it back.

Onesleeptillwembley · 10/06/2013 14:02

Very best case scenario is you'll have to pay it all back. But as you defrauded it'll probably be much worse. This is now being cracked down on far more than previously, and rightly so. I have no sympathy for you, but will say your best case would be to admit and try for remorse for cheating, rather than being caught.

KirstyJC · 10/06/2013 14:04

Oh, sorry - was I supposed to pat her on the back for lying for a year? She said she knew she was in the wrong, so presumeably lied on purpose. Why should I lie to her and tell her it will be OK? She took a chance, it has backfired.

This is the same as benefit fraud you know, we are all skint - not all of us lie to get money we aren't entitled to.

Tough.

OP - if it WAS accidental then you need to persuade them it was, giving your reasons. In which case I apologise for being a tad harsh. But it wasn't accidental, was it. So no apology needed I suspect.

Onesleeptillwembley · 10/06/2013 14:04

Northern if somebody steals or defrauds then people have the right to be neither sympathetic nor supportive.

Original poster
sicknotemum · 10/06/2013 14:05

To be honest we did completely forget to ring at the time he finished at the daycare cause we were all bizz with him starting nursery but when we did realise a few months later we should have called but had that many bills to pay and the childcare costs are so expensive in the first place. I know we have completely done the wrong thing but I am really scared about ringing about and telling them, we have got ourselves into so much debt with payday loans as well and I know we will have to pay back the money that was overaid to us but I am scared about court hearings etc.

OP posts:
axure · 10/06/2013 14:07

Kirsty you are a knob. OP it sounds from the title of your post that you knowingly committed fraud, you failed to inform HMRC of changes in your circumstances that would affect your entitlement. That said it's not a hanging offence, send the receipts you have and a covering letter explaining that one child was in nursery for the period. I'm sure you can come to some arrangement to sort this out.

Northernlurker · 10/06/2013 14:08

The Op didn't say she'd lied. She said she knew she'd done the wrong thing. That didn't necessarily mean she lied - and she has herself now clarified it. There was no need to pat her on the back but a little kindness to a scared person wouldn't kill you would it?

KirstyJC · 10/06/2013 14:08

So it was deliberate. Nice.

They will probably take small payments monthly rather than all in one go. But being skint is no excuse and nor will it be taken into account. If you owe the Revenue money, you have to pay it.

I would probably write a letter rather then phone them, so you have time to write it in the best way possible without getting too emotional.

I wouldn't have thought a court would be involved unless you default on the repayments so don't worry about that.

wishingfor · 10/06/2013 14:09

Right, you aren't the first, you won't be the last, times are hard and all that. You will have to pay the money back, that goes without saying, taking into account your income, outgoings etc, you should hopefully be able to pay in instalments. Try not to worry too much, I'm sure you've not been living the life if Riley with all this extra money you have had, unlike a lot of people who claim what they aren't entitled to.

PiratePanda · 10/06/2013 14:10

All you can do now is come clean and take the consequences. The later you leave it, the more you try to cover it up, the worse the consequences will be. Don't leave it any longer.

Northernlurker · 10/06/2013 14:11

Did you use nursery or other approved childcare for the times when the school (I assume) nursery was closed? Because if so and you have receipts for that then you may find they will offset some benefit due to that against what you owe.

KirstyJC · 10/06/2013 14:12

Ooh never been called a knob before. Can I have a biscuit with that too?

And she has now said she lied by the way (as indeed she did in the OP but never mind), and as for kindness she didn't ask for that, she asked what she should do, and I made my suggestions accordingly.

I am sorry she is scared but that is what happens if you get caught lying to the Revenue - one of the Govt Depts with a frightening amount of ability to take what they like.

FiveSugarsPlease · 10/06/2013 14:12

Wasn't your child still entitled to childcare money though when he switched to nursery? Or was it reduced hours/free hours?

Write a letter, making sure everything is concise and unemotional. Tell them you believe you have been overpaid due to your failure to update details, and that you'll be happy to pay back the money in a way you both agree.

Original poster
sicknotemum · 10/06/2013 14:42

I know I have t be honest and that we are totally to blame and I am not looking for excuses I am just very very scared! I actually feel like throwing up! I totally understand we will have to pay back the overpayment and a fine, but there is no way we could pay it all in one go! And no I was definitely not living the life of riley, if only! Again I know a load of other people who are frauding the system but seem to know how to do it right and never get caught. I know we should never have done it in the first place and knew we would get caught but it was so hard when we had money issues!

OP posts:
Original poster
sicknotemum · 10/06/2013 14:44

I think I might have to ring them rather than send a letter cause I will never be able to sit waiting to hear what is going to happen whereas if we phone them they might give us some more info over phone. Is there anyone we should contact to maybe help us with the situation so we are not on our own?

OP posts:
FiveSugarsPlease · 10/06/2013 14:49

If you are going to phone them, maybe write down a little list of points you want to make? Just so you don't dissolve into a bumbling nervous wreck.

Could you visit CAB and ask them to call on your behalf, or sit with you while you make the call on loudspeaker?

And as for the other people you know who seem to be getting away with their fraud, it will catch up with them eventually. Same as it has done with you. Yours just caught up sooner.

Original poster
sicknotemum · 10/06/2013 14:51

Sorry not sure what CAB is?

OP posts:
AttilaTheMeerkat · 10/06/2013 14:54

Citizens Advice Bureau.

BabyStone · 10/06/2013 14:58

Citizens Advice Bureau

MisselthwaiteManor · 10/06/2013 15:06

Reading the tax credits website it says they may reduce the penalty if you offer up the information voluntarily so your best bet is to be totally honest and prepared to pay back what you've stolen.

Times are hard for a lot of people but not all of us resort to theft so that won't get you any sympathy.

Original poster
sicknotemum · 10/06/2013 15:10

I know I have done the wrong thing and I am in no way looking for sympathy from anyone, I am just really scared and can't hep thinking about possibly having to go to jail!

OP posts:
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