Tax Credit Check

[natalie683]

So I received a letter from Tax Credits stating they need to perform a check on our 2018 claim as they think the cost we have submitted is too high. we were paying for 3 kids (one 7 year old and 2 year old twins) in childcare 3 days a week so costs were high anyway.

having started to gather the documentation together that they have requested, I have noticed that the direct debit to one childcare provider hasn't been coming out of the bank - this hasn't been picked up by us or the childcare provider. so I obviously don't have the evidence for this but it has been included in our weekly payment from tax credits.

I'm starting to panic that they are going to think that this has been done on purpose, which it hasn't, it has been a genuine oversight by both parties. what should I do?? obviously I will be speaking to the childcare provider and rectifying the situation and ensure a new direct debit will be set up but do I ring tax credits and tell them of the mistake or do I just send in the evidence that I have an explain in the letter why I haven't been able to provide the other information?

any advice would be gratefully received
from a panicking mam!!

Hi,
So do you owe the nursery a massive payment?

It's after school club that we owe and will have to discuss it with her to make an arrangement. Nursery is all paid up to date. I'm just concerned that they won't believe that we both haven't picked up on it until now which is the case

It's going to be really hard to prove to them that it was a mistake, did you not realise you had more money than you should

Honestly no we didn't. We aren't very good at checking the bank and don't do it on a regular basis.

I would send everything off with a letter in just explaining

I would pay the bill now, get a receipt and use that a proof of payment for the tax credits. How much per month should you have been paying them

Get a bill from the provider with a breakdown and total cost you owe.

Pay it and send it in as evidence

I don't think this will be difficult to prove at all, the childcare provider will be able to confirm that the childcare has in fact been in place and that the amount is due, as others say HMRC may want to see the bill is paid and proof of that, but I'm sure it can be sorted easily enough. I hope the amount isn't too high, if it is hopefully between the 3 of you you could agree a payment plan.

As PP has said, HMRC should be happy with a letter from the provider confirming that childcare has been provided even though the bill hasn't been paid. The entitlement is based on the amount charged regardless of whether you pay the provider or not. Same as if you receive housing benefit but don't pay the landlord, you're still entitled to it because you have the rental liability.