Tax Credit Overpayment - Help Needed

[Worriedand Stupid]

HI,

 

I haver got myself in a right state and it's all my fault!

 

I have 2 children, 1 is 11 and 1 is 2 1/2. I have been claiming wtc & ctc for a while now and I lied on my last application to the compliance officer, when my award was reviewed in August. My 11 year old was at a childminders for after school / holiday care and my youngest is in nursery. The issue is not with my youngest son, as that is all straight forward and correct.

 

However, I had to remove my eldest son from the childminder, as she had stopped providing care for that age group and I couldn't find anyone else that would take on someone that age. I work until 6.30pm and wouldnt want him alone at home.

 

I employed someone to look after him at my house, but they were not registered and it was more of a family friend who was on maternity leave. This was of course, all unofficial and she has told me that if asked, she will deny all knowledge!

 

I can't believe I lied and I am now so worried. Tax Credits believed that he was still at the previous childminder and had her details on file. This childminder then phoned me today, to tell me that tax credits had been on the phone and she had told them that my eldset hadnt been there for 12 months. Tax Credits also phoned my sons nursery, but they were given the corect information.

 

I feel stupid and terrible, I can't get it all out of my head and I'm so worried. Why did I lie?? I know at the time I was worried about losing my job, if I had no childcare and I don't know now what I would have done instead. I tried every childminder in a 15 mile radius, but none supported his age group or had vacancies.

 

This does not distract from the fact that I lied and I sent the compliance officer a spreadsheet of the costs! I was genuinely spending the money on care for my son (both at weekends), but I will have no way of proving this. The amount in question is about £5000 (I think), but I have had no official word from HMRC. I tried to contact their payments line today, but they have told me that they have no record of an overpayment on their system. I really don't know what to do from here.

 

All I can think of is being sent to prison!! I could lose my children, my house and my job. I was extremely stupid and I donrt know of a way out.

 

Any help would be much appreciated.

[Maryj]

Hi, I'm pretty sure the chilminder needs to be registered, however, perhaps if you could have your friend confirm you were paying them for childcare then it would not seem as bad! I'm not an expert but just going on what I've heard about them!

[Worriedand Stupid]

Hi,

 

Thanks for your reply, I know that they have to be registered, but there was no-one available to take my eldest. It's something to do with different types of ofsted classification for age groups, or something.

 

My 'friend' has already said she will deny all knowledge, as she doesn't want to end up in any trouble.

[Maryj]

Hi, I would just be honest and say you were using the money to pay for childcare although it wasn't a registered childminder. All you can say is explain the situation that you couldn't find other appropriate childcare and this may have stopped you going to work. They may ask for proof but you will prob need to say that you were paying cash do have no reciepts. At least if you are honest you can get it sorted out although I am not sure if they will say you have been overpaid as all they will have is your word.

 

Good luck and let me know how you get on. I am also having to send in a lot of documents just now and worrying about overpayments etc.

 

Hi,

 

Thanks for your reply, I know that they have to be registered, but there was no-one available to take my eldest. It's something to do with different types of ofsted classification for age groups, or something.

 

My 'friend' has already said she will deny all knowledge, as she doesn't want to end up in any trouble.

[jadeybags]

Definitely needs to be a registered childminder. Is your friend on benefits, so doesn't want to have undeclared income? They wont accept an unregistered childminder anyway, so no point in dropping your friend in it. It's a nightmare working when you have young children. Especially when they are 11. It's that awkward age, mine would have hated to go to a childminders at that age, I was leaving them on their own when they were 13 & 11 for 4 hours in holidays. And just hoping the house was still standing when I came home. As for tax credits, they will want it paid back, in installments, but so far that's all they seem to be doing with people on average.

[Worriedand Stupid]

Hi,

 

Thanks for the replies, I am just waiting on some sort of come back from Tax Credits, as I know that they have spoken to both my childminders (the nursery and the one I claimed to still use), but I've heard nothing back.

 

I've stopped the childcare payments, but they inssit on paying me for a further 4 weeks, as a 'run on'. I've also spoken to the payments line, but without them having any figures for an overpayment, I can't set up a payment plan.

 

I work on saturdays, so I had no choice to get an un-registered childminder as I wouldn't leave my 11 year old in the house on their own, or especially ask him to look after the 2 1/2 year old. The law states that they cannot be left pon their own at home until they are 14 years old, if there are no childminders available, what do the government want people to do?? I've been in my job for 8 years, if I give it up, then there is no way I can pay for childcare anyway. I know what I did was wrong, but I couldn't see anyway out. This however doesnt make it right!

 

My friend is on benefits, so that's why I cannot even mention her name. I know what she was doing is wrong, but she is also in the same situation, as she can't get a job and childcare etc. She would actually be better off if I employed her as the childminder, as she would then have a job / get tax credits herself etc, but this is not possible as she is in rented accommodation and her landlord / ofsted won't allow it. I have checked the NCMA register weekly, yet there are never any vacancies for the children. The only one that would take the 2 1/2 year old on a saturday charges £80 per day at the weekend. As he has nursery during the week, the maximum that TC would pay would be £21 (this was checked with TC), as I had hit the maximum allowance for the children. I would still have to pay to have my other son looked after, as he cannot be left for 8 hours.

 

I understand I'll have to pay it back, god knows how, but if I get prosecuted, I know I will lose my job (due to the nature of my job). I am terrified about what is going to happen. I can't get it out of my mind and I can hardly sleep. With Christmas nearly here, everything seems to be on a go-slow and I can just see me falling apart by the new year.

 

As my (un-registered) childminder has now stopped looking after the children, in case TC come snooping, I've had to take emergency holiday from work for this week (unpaid) and I have no idea what I am going to do come January 3rd.

[Worriedand Stupid]

As I said earlier, I sent a spreadsheet to the compliance officer with the costs for the childcare in August and I recieved a letter back saying that everything was in order! All of the figures were correct, but they weren't from the registered childminder, as I claimed, this was for when my children were with the un-registered childminder. I know I shouldnt have continued with the claim, but I was honestly desperate. I couldnt work without the tax credits to pay the childminder and if I didn't have a childminder, I couldn't work.

[jadeybags]

It is a catch 22 isn't it. There isn't actually any law that says what age children can be left on their own, but there is a law about what age they can look after another child, & yes I think that's 14, it's all a bit vague really. My step mum left her 3 children alone all night when she worked night shifts at Broadmoor, in those days (the youngest is nearly 30 now) there was no help with childcare costs at all. But she didn't claim any benefits & had a mortgage.

I really don't think you'll need to worry too much about anything more than paying the money back & of course the child care issue. That's a nightmare enough.

[Worriedand Stupid]

It is an absolute nightmare! I have a mortgage as well, if I was renting, I'd get help with my rent. As it is, I'm in negative equity and no hope of selling. I pay my council tax and the only other thing I get is child benefit. It's so hard to get by at the moment and the stress of paying all the bills is unbelievable. Sometimes you rob Peter to pay Paul, but I always make sure that the mortgage is paid and the childcare providers, even if one isn't official. If I lost my job, I'd lose my home, if I don't pay for childcare, I lose my job, it's a vicious circle. I have tried everything to get childcare, even using agency staff on 2 emergency occasions, but they cost more for one day than I pay in a week usually. I know I'm in the wrong, but the system is also wrong!

[Conniff]

This was of course, all unofficial and she has told me that if asked, she will deny all knowledge!

 

I wonder how many she was doing this for and getting paid cash.

 

Just because she says she will deny it, that don't mean you can't name her. The Tax office might be interested in this as well, she is likely to have 'forgotten' to pay any tax.

[jadeybags]

It is an absolute nightmare! I have a mortgage as well, if I was renting, I'd get help with my rent. As it is, I'm in negative equity and no hope of selling. I pay my council tax and the only other thing I get is child benefit. It's so hard to get by at the moment and the stress of paying all the bills is unbelievable. Sometimes you rob Peter to pay Paul, but I always make sure that the mortgage is paid and the childcare providers, even if one isn't official. If I lost my job, I'd lose my home, if I don't pay for childcare, I lose my job, it's a vicious circle. I have tried everything to get childcare, even using agency staff on 2 emergency occasions, but they cost more for one day than I pay in a week usually. I know I'm in the wrong, but the system is also wrong!

 

In the situation you have described, I agree. You are stuck between a rock & a hard place...