Tax Credit Check. Talk of Penalties. What does this mean?

[PanickingPanicker]

I received a brown envelop in the post today, addressed to me and DH from tax credits. It is quite threatening in its wording, says our payments might be wrong. It talks about cooperating with the check and that there may be a penalty if we have received an overpayment. Says I may wish to get advice from a professional advisor.

Further down, it talks about tax credit renewal and says "we have chosen your award to check if the information we hold for you is right".

They then ask for me to send payslips for 6th April 2013 - 5th April 2014 showing the hours that I have worked, and income earnt.

There is also an enclosed leaflet about penalties, which says that the leaflet is included for those people who may be liable to a penalty after they have made a check on their tax credits claim.

I called the tax credits team on the number provided and the person I spoke to said that it was a random check to ensure the information provided is correct.

I need to get copies of my payslips from my HR team and the man I spoke to said that was fine (I have just called and done that). He said to renew my claim as normal when I get my P60 which is what I am waiting for before I renew. I have my renewal pack, received separately a few weeks ago.

What is this all about? Is it random or do they think I have done something wrong? DH has changed jobs during the last year and we notified then firstly of a reduction in income in his last job, then a change of job, although the income prediction for him is the same. We have also changed (reduced) childcare costs during the last year, when his income reduced.

I did receive a letter when we notified them of DH's new employment etc that stated they had made an overpayment from the year before which they are taking back out of current claim, that was not based on error on our part as we renewed our tax credits with our P60s as usual. The person I spoke to could not explain to me at that point why the overpayment was not noticed in July when I renewed, but either way it was not a problem, I would have had to repay an overpayment whenever they noticed but it was odd they had not told me about it at the time.

The information held on my hours worked and predicted income is the same as it has been for a few years, so nothing has changed for me, but now I am worrying that something has been missed, although they are not asking for evidence of DH earnings, only mine. My actual income is around £1000 more than my predicted income as I got a payrise Feb, backdated to April last year, but that would all be confirmed in the renewal information.

Panicking as the letter is quite clear in the wording that they think there is an error, and it is suggested it is possibly my error.

Is this simply a random check as he said, if so why is it so heavy handed? Or, what else could be concerning them?

anyone?!

Its random, don't worry!

It does say 'we have chosen your award to check to see if the information we hold for you is right' but it's the first bit that has made me panic, the 'owe think that your payments might be wrong'. And then the whole stuff about penalties, getting professional advice etc, and the leaflet.

Why can't they just say, we have randomly selected you to confirm some details? It sounds so threatening, like I've done something wrong. And like I said, DH's jobs changed and income reduced but that is not what they are checking. Why don't they want to check his stuff? (which would actually be more difficult to prove, as all his payslips are with carers allowance people still!)

The stuff about penalties and getting a professional advisor are standard.

I am surprised they told you it was a random check, I don't think they're meant to say. If the payslip stuff was the only info they asked for I would have thought some info they hold is different to that you submitted.

Please don't panic it is frightening but it sounds very minor.

I asked him if there was a problem with any information, what the reason for the check was, and he said they do random checks to ensure that the hours and income people declare match the information they have on record. The information they want, they make it clear they want to check the hours I work in particular, and he said a letter from my employer confirming what I worked for the period in question and the income would be sufficient if I could not get the payslips. My HR colleague is emailing the finance person to get her to send me copies asap from the period in question (entire 2013/2014 tax period) and to check if it includes my hours, if not she will ask her to write a cover letter with it to confirm what I worked last year.

it says "please note if Mrs xxx's payslips do not detail her hours, in addition further evidence is required such as time sheets, a letter from her employer with a breakdown of hours worked (on a weekly basis) or any other evidence to confirm her working hours over the period stated above"

So they are quite specific. My hours have not changed since I returned to work after DS was born 4 years ago, and my renewal pack has the correct hours recorded.

As I said, the income itself would not be exactly as predicted as it was a prediction/approximation as I often get a pay rise of an unknown amount, always backdated (once unions agree a percentage with employer, takes ages) and this has always been how I have done it, and confirmed the actual income when I get paid my P60 in my renewal call.

I don't mind sending them the info as requested, just scared they think we have tried to fiddle the system. I know we haven't but doesn't stop me being scared. You know like driving for several miles with a police officer tailing you, ever had that, thinking 'is my insurance due for renewal I haven't missed it have i? are my lights all working? Did I go through an orange light to close to red? did I go to fast, not check a crossing enough? is he going to bust me for something?

It's random. They pick a person at random to check you're not defrauding them. If you've told them of changes etc then you have nothing to worry about, even if you've made estimates, that's fine :)

I think they're just being shitty and threatening an a MO at the moment :(

and the letter says 'we are checking your tax credits award for the year ending 5 April 2014' so it's not the last year's award that's being checked, it's the current award notice that has not been confirmed yet, it's still provisional until I confirm the details in the renewal notice.

In the discussion I said 'oh so it's like giving you written evidence of what I am telling you on the telephone in my renewal' and he said 'yes that's exactly it'. But, there is a caseworker assigned, which is what makes it scary, it's not a call centre general contact number. I didn't realise until after I called but I think the person i spoke to was the caseworker. I didn't go through the normal number and on hold etc, and he said straight away after security checks 'so, you are calling about some correspondence you have recently received?'

bertie I called them when DH left his job but no p45 and before he started another one but without the details of the new one and they said call back and update with all the info and not to worry, then I called then to say I didn't have the info, they said wait. Then I called with the info when I had it and panicked as it was later than the month's notice of change they need, they were fine with it, as DH's income has not actually changed, just his employer. Then I panicked because he has just got carers allowance and it's been backdated so called them to make sure I am not in trouble for that, so, safe to say I have kept them informed.

I worry that they have missed information somewhere in all the changes that have gone on and it's all gone wrong and I won't know where it's gone wrong and won't be able to fix it. And I hear all sorts of things/read all sorts of things in the papers on the internet about them making coming down on people like a ton of bricks when things go wrong and I am all panicky now. Hence my name.

But, none of the changes are anything to do with my income or hours, which is why I am so confused. And they don't want clarification of DH's working hours/income.

when they wrote to tell me my new award after DH's change, they said there was an overpayment from the year before (2012/2013) and I checked with them what that was for, I was worried that something had gone wrong then too. I am fine with overpayments being made in error due to confusing information, the system confuses me! And if there is a different overpayment for some reason (again, not sure why that would be the case in relation to my own hours) I am happy to pay it back - if I am not entitled to x amount, I am not entitled, but I am worried about penalties, and more than that, criminal conviction! Mainly as I work in a CJ profession.

It will be fine. Send them what they have asked for and please don't worry or try and spend a long time analysing this. Benefits departments in general at the moment seem to be trained to treat you like a criminal at every opportunity. It's not personal. The "penalty" would just be having to pay back an overpayment.

STOP WORRYING! :)

bertie ok. I shall try not to panic any more than I am already I am already paying an overpayment of £800. not sure how they made that error, as they and our income (it was the income before DH lost one job, his salary reduced first so one year much higher than the other), but they already said this was their system playing catch up or something, he didn't really seem to know (different person). I can't see that there would be any more overpayments made, as most of my CTC is an enhancement for having a disability and working over x number of hours. Perhaps thats why they are questioning me actually working the hours I said I do?

Ok. so. I shall put this to bed tonight. Finance colleague will be in touch tomorrow, I should have the payslips by the end of the week I should think, could have collected them tomorrow if I was in that office, but not. I will send them off by the weekend by recorded delivery/signed for delivery and contact them after the 10 days they said to allow for them to review the information after sending it in to see what's going on then.

Thanks for calming me down bertie, gin and imperfecttense (not named after a Frank Turner song are you?)

You are wrong about penalties BB they are separate to the actual overpayment but they are only charged in some circumstances. HMRC operates as a tax rather than a benefits agency.

OP I don't think you have anything to worry about. As soon as you submit the information they will close it.

I have had a very similar letter but wanting confirmation of all payments made to my childcare providers for the year. I am assuming it is because I changed childcare a couple of times during the year.

Don't worry, send them the information and you will be fine. If there has been any mistakes either yours or theirs you will just pay back the over payment.

I have been randomly checked every year now for 5 years.
You name it, they've needed to check it.
So don't panic, they are doing it all the time to most people.
I panicked first time, this year I will be amazed if I'm not randomly selected again

I have pm'ed you OP. Please don't worry any more it's not worth it.

I have been checked the last three years and my childcare provider (the school) is phoned every year. This drives me nuts as why don't they just do that and save me the hassle of phoning. I have had one overpayment due to reading out the wrong amount which is now paid back......
I hate this time of year (and am yet to receive my pack) as my household bills are budgeted to the wire and any fluctuation in tax credits affects housing benefit etc. Will be glad when it's sorted for another year :/,

We had the same letter today.... DH is self employed and frantically making sure he's got everything uptodate... we thought we had a while longer to fill in the renewal and this letter gives us two weeks! It is random though and can understand why they do it.

Interesting to read that others have had similar letters, albeit asking for different information. I shall just go with it for the moment, and try to remain calm, but the wording is quite harsh, enough to send fear running through me! fight or flight response i guess, just its a modern risk to emotional wellbeing rather than an old risk of being eaten by a wolf or something.

Iv had one too , but for income for myself and dp . It says they will reply in 10 days , it was received by them 27th June and still no reply !