Tax credits penalty notice

[BatCrapCrazy]

I've received a letter from tax credits saying I need to pay £1800 penalty for negligently claiming tax credits for the tax year 12/13.
I had a letter from compliance just before the renewal process in April asking for child care costs, bank statements and work contracts. It emerged that they overpaid me for childcare and the 30hours element (my hours reduced to 25 during the tax year). I completely forgot to change them and admitted fault and have been paying the overpayment back through reduced tax credits.
The penalty notice is dated 27th November but I live with my sister and she accidentally took it into her room so I only read it today.
What can I do to appeal? I'm so scared- I don't have that kind of money to pay out. I'm a single parent of 2. The deadline for the penalty was Friday so I'm probably already incurring interest!
Thanks in advance

Any advice? I'm pooping my pants worrying!

Ring them first thing tomorrow and see what they say... Hopefully they can just take some more out of the tax credits you're currently claiming.

It says on the letter that It can't be taken from my payments as it is separate to the over payment iyswim.
I'm worrying because I'm literally living hand to mouth at the moment. My kids father is unwell so isn't working so I'm not receiving child support from him at the moment and I'm still paying back council tax arrears from when we were together. I can afford £40-50 a month at a stretch (phone contract comes to an end in January so just won't renew that). But will that be enough?

You can do an list of your income and outgoings to prove to them you can't afford more than that - remember that you can't pay them money you don't have and they know this. Just easier for you if you have the figures to hand rather than estimating them.

How come they overpaid you for childcare?

Am shocked by this, it sounds utterly punitive. You complied with everything they asked for, you did not deliberately set out to defraud them and you are repaying the overpayment.

Is it worth seeing the CAB for help about this?

I had this a few months back they overpaid me by £2000 I knew they had but as it was for the tax year10/11 I thought I had hot away with it so to speak. I called to say my DS had started work but they never altered my payments and the following year we didn't need to claim so I put it to the back of my mind. I rang them and offered £25 per month and they accepted that it will take me about 15 years to pay off but I owe the money so I have to pay. They were very helpful and reasonable. Don't worry.

Is that the penalty or overpayment you are paying back happycrimble?

There's no answer at the number I've been told to ring.
I was overpaid childcare because I told them my childcare costs at the beginning of tax year but forgot to tell them they were going down (didn't do it when they first went down as I thought they'd be going back up within a week or two as I was looking for a new nursery.)
I didn't realise my mistake until they asked for everything and I wrote to them straight away and explained.

Had a quick look online & it says for a first overpayment it should be no more than 30% so that seems a lot of money just for a few hours additional childcare & the 30 hr benefit. I expect they will be very busy as closed over Christmas but keep trying, I'm sure it can be sorted.

The amount that they said they overpaid me by was 6000 I think which I thought was too much but when I questioned it they said it was right

I would query that unless your childcare is very expensive?

Childcare was quite expensive - was paying 200pw originally and then it went down to 90pw.
I've just spoken to them and they were lovely. The man agreed for me to pay £40pm and said it doesn't matter how long it takes to pay it off.

Brillian but might it be worth appealing so you don't have to pay it at all?

The guy on the phone said I need to appeal in writing so will do that this week