so worried - overpaid childcare tax credits - ** RESOLVED **

[reallyworried]

Hi, I'm a new member so please be gentle. Where do I start, I am just so worried, I feel sick, can't sleep, can't eat......which could be a good thing . Any way brief outline is received child care compliance letter, understand these are standard letters being sent to a number of people. Mine is headed 'your tax credits award to 5th April 2013. I remember doing my workings on a piece of paper and working out what the estimated variable costs would be, I however cannot find this now and my calculations now are about seventeen pounds a week less than what i told them, i cannot for the life of me work out why different or remember what i worked my figures out at. Sometimes last minute during school holidays my child has been able to go to her aunties, friends, I have sometimes had a day or so off or last holidays my mum was recovering from a hospital visit so she stayed with her instead so once I get my actual costs through they are going to differ to my estimated costs that they asked for.

 

Whilst worrying about this I have also realised that it completely slipped my mind when my husbands tax return was done to tell them his actual profits. His return was done last minute and we were stressed about getting it in on time that I just never gave it a thought. His actual profit is about £4, 500 more than what I estimated the £3000 to be. My salary on my p60 is also about £2, 000 more as I have done overtime on occasions.

 

I am obviously going to write to them with the child care invoices and was just going to send back my declaration with it to the compliance officer but I am getting myself so stressed. I was just going to advise as I have above, apologise and hope that they understand that genuine errors made. I know I will have to pay the over payment back but so scared what they will do over all the issues. I have never knowingly lied to them, myself and my husband try to work really hard to survive. We would love another child but know we cannot afford one and as I am in late thirties know time is running out. I am sat here crying with my heart heavy, I feel so stressed. I don't know what to do, what will they do. Will they serve us with a penalty, will they take us to court. Will they now ask for everything from last 5 years, if so I have not a clue where to start. Please please help I am so overwhelmed by it all. I'm even worried what they will think about me. I am worrying in case I have made mistakes previously, don't think I have and always told them of actual earnings or changes but what if I have. Wish I had never claimed now and just struggled by as don't feel I can cope with this. I feel so helpless and that I am now going to be hung, drawn and quartered by them.

[reallyworried]

Please can anyone help. I feel I am going out my mind.

[seanamarts]

Once they have conformation of the earning that you have, they will send a notice that you have so much that was an overpayment, they request it be paid back by a certain date but they will allow you to pay it back over time or if you are still claiming tax credits, they will often deduct the amount from your weekly amount.

 

I seriously doubt that you will be penalised over this.

[reallyworried]

Thank you, I know I will feel better now for about ten mins and then the doubt will set in again. Oh god, why is life so hard. :ohwell

[reallyworried]

well I'm back feeling sick again. Has anyone any experience of this previously. Sorry I just feel I need to talk about it but feel so alone. My husband just says we 'll sit down this weekend and write a letter explaining as best we can and say we understand any over payments will need to be paid back. Can you believe I was up at four this morning as couldn't sleep and stated putting comments on paper. I just feel that they will think that I have been lying, which I promise I haven't, I'm worried what they think. Myself and hubby have worked from leaving school, only thing we claim is this and now I have dropped us in the do do by not getting it right.

 

Does anyone know what they will do about us not confirming his actual profit in time, will they open up all previous awards?

[honeybee13]

Hello there.

 

I think you're doing the right thing by owning up to this and I hope you'll feel better once things are moving on. There are loads of threads here about overpaid child credits; if you have a read around the forum, you'll get an idea of how it's dealt with.

 

I'll amend your thread title so people will know what you're asking about and try to get you some help.

 

My best, HB

[reallyworried]

Thanks honey bee.

 

The thing is we are honest people and I do appreciate them making checks and believe they should but I feel now like they will think I was trying to defraud them. I just hope by admitting mistakes and offering to pay it back that they look upon it favourably. They are only asking for child care so if I was dishonest I could just give them this but I have realised (too late, I know) that I forgot to confirm actual profit. I am a worrier and I will probably feel loads better once I have done letter and sent it. Going to stop including the weekly payments in my budget from now if I can and tighten belt drastically. Thankyou to everyone who has replied, it is appreciated and any more comments more than welcome. I need to get rid of this awful feeling inside that makes you freezing cold but sweaty....not nice lol x

[seanamarts]

Believe me, they make many mistakes themselves so I am quite sure you will be fine. If you are really worried about it you can phone their help line;

You can call the Tax Credit Payment Helpline on Tel 0845 302 1429. The helpline is open from 8.00 am to 8.00 pm Monday to Friday, and 8.00 am to 4.00 pm on Saturday.

[Desperate Daniella]

Hi reallyworried, and welcome to CAG!

 

Please, please, please stop worrying. Everyone can make mistakes, and HMRC know this. I've only ever heard of people being taken to court if they are deliberately claiming vast amounts of money fraudulently, and you certainly haven't been doing that. They have to justify how they spend their money, and they certainly couldn't justify taking anyone to court for what is, to them, a very small sum. I don't think for one moment they are going to think you were deliberately trying to defraud them.

 

You say in your first post that you were asked for "estimated" costs for childcare. If that is right, I can't see that there will be any problem in adjusting the figures. An estimate is just that, and you are allowed to change it when the actual figures are to hand. As this is only £17 per week - less than £1,000 a year - it's hardly excessive.

 

Again, if you were asked for an "estimated" figure for your husband's anticipated profit there shouldn't be a problem with an adjustment there.

 

An estimate is a rough calculation but not necessarily a final one.

 

I would write them a very polite letter saying that your final childcare costs differ from the estimated costs you were asked for earlier.

 

Then say your husband's profit was £4,500 more than the estimated figure, and you also earned £2,000 as overtime.

 

If there is an overpayment then you can ask for it to be paid by instalments you can afford or they may deduct it from any tax credits you are due.

 

Does their letter actually state that they believe you have given them the wrong figures?

 

Again, please don't worry. There are threads on here which would make your hair curl with far more money involved, and the worst I have ever seen is that a repayment has had to be made.

 

I don't believe that even HMRC can have you hung, drawn and quartered.

 

DDxx

[reallyworried]

Thankyou, they have only asked for any correspondence with child care provider and then invoices or letters showing what's been paid. No mention that they think I have given them the wrong details? .I am behind on payments to the child care as it took them a few months to give me a invoice and stupidly I had not put the money by but I hope this won't affect anything as obviously I still have to pay it x

[Desperate Daniella]

They will not be interested in your payment status with the child care provider, just that you have a genuine invoice/s.

 

And you are sure they only asked for "estimated" figures before? If so, I can't see any problem with amending them.

 

DDxx

[reallyworried]

They ask you for your average weekly costs, I worked this out to what I believe was correct) but now don't know how I worked it out and different to what I calculate it to be now. I also claimed full day payments to child care for school holidays but haven't always used this which I wished I had now as would have been a lot easier now but her auntie has sometimes said let her come to me for that day and then my mum had a operation so was at home and she had her one of the other weeks. What do i give them as there is no guarantee a family member would be having her or that I could have a days holiday etc. I'm up sh t creek aren't I. Guess it's back to worrying myself stupid

[Desperate Daniella]

Stop it.

 

They asked for an "average" weekly cost. That means working out what it is likely to be over a period of time. You anticipated you'd be using the child carer but sometimes things changed. That is completely understandable, especially in light of your mum's operation and her needing some company to cheer her up.

 

Do sit down though, quietly with a cup of tea, and cast your mind back and try to remember what you included/didn't include when you were doing the first estimated figures just in case you suddenly remember something. Did you, for example, include travelling costs to the childminder when you worked it out? Or anything like that?

 

Truly, the sums involved here are a drop in the ocean to HMRC. Their only interest will be in recovering any overpayment.

 

DDx

[reallyworried]

No travelling cost - wouldn't have realised you could . All I can think is I either thought there was more school holidays but even then none of my now calculations are right, or even thinking about it when her child minder stopped doing it the payments dropped slightly as the after school club are slightly cheaper. I called them and told them Changet of provider sure I amended amount as well but this is similar although not the same to my average weekly costs what I paid to child minder, ooohhhh I don't know. My mind is a mess, I honestly can't remember, why oh why didn't I keep a record. Maybe I thought was not ten pound more so no need to say gone down. I just don't know and getting myself more confused. Do you know if they will base the over payment on the 17 pound or the 7 allowing for the 10 either side x

 

Thank you for your help, can you please come and live with me until this is all sorted so that when I am having the wobblers you are on hand to make me calm down lol xxx

[Desperate Daniella]

Thank you for your kind invitation to come and have a holiday with you! That really made me laugh.

 

I have no idea if you can charge travelling costs to the childminder; I'm just trying to think of what you could possibly have put down. Did you give them one average figure, or did you itemise anything, apart from telling them of the reduction between childminder's fees and after school club fees?

 

BTW, I have every sympathy with you. I am the world's worst record keeper because I'm always scribbling things on the backs of envelopes which get mixed up with everything else and shoved in a drawer. I've had to search the entire house on occasions and I swear I'll never do it again. But of course I do....... xxx

[reallyworried]

I just gave them one average cost, the breakdown I did for myself to work out, perhaps i added up wrong. I just dont know and going to drive myself mad - guess I'm just going to have to tell them I made a mistake, and say I appreciate I will have to pay back and hope that is okay. I pray it will be, I can't seem to think about anything else.

 

Yes I am totally rubbish and we have drawers of the stuff. I seem to have stuff I don't need yet the stuff I do I can never find. Must become more organised.

 

I just tell myself (on a good moment) they will have seen it heard it all before, there will be a lot more far worse than mine and I am accepting that needs to be paid back ....fingers crossed x

[Desperate Daniella]

I think you added it up wrongly. I would say exactly that. Anyone can make a mistake adding up figures. Did you give them the estimated figure in writing or on the phone? (Sorry if you have already said above.)

 

Of course it's going to be okay.

 

There are have been threads on this forum where people have got into terrible muddles by allowing their ex partners to use their addresses for correspondence/loans/credit cards and it's been difficult to prove that they aren't in fact living together. Even in the very worst situations the most that has happened is that overpayments have had to be repaid, and sometimes HMRC have just accepted that there is no case to answer anyway. As you say, there will be a lot more far worse than yours. We've seen them here and no-one has been jailed, hung, drawn and quartered, or even put in the stocks for people to throw old vegetables at them.

 

Repeat after me: It's going to be okay.

 

xxx

[reallyworried]

yI told them over the phone. Thankyou so much. I am driving my hubby nuts keep trying to talk about it. He just says it will be fine, we 'll do letter but try telling my mind that at four in the morning. Needed to lose some weight though so all good there lol.

 

I can't thank you enough and will keep coming back on here to read your words (as I can't take you home .

 

Guess I can only tell them what I can, I have a lovely husband, gorgeous daughter who is healthy, happy and the most loving child in the world, so I am very lucky...had very hard times in the past so i need to put this in perspective...I am at present having a positive moment.

 

Once again, thankyou, you really don't know how much your comments help. Never done this forum taking malarkey but it really does help andI don't feel so alone

[Desperate Daniella]

It's better that it was on the phone. You gave them an estimated figure and you made a mistake in the addition.

 

Listen to your husband: It will be fine.

 

This is the only forum I am on. It was a godsend for me when I had problems five years ago and didn't know where to turn. It helps so many people who feel desperate and worried and alone. I was in an awful state when I found CAG.

 

Like you I have a gorgeous daughter and the sun is shining. I am glad you are having a positive moment.

 

If you do wake up in the night there is no point in lying there and worrying because at that time you can't do anything. Get yourself a good book and read until you feel tired.

 

Please come on at any time, even if you only want to let off steam.

 

Have a lovely evening with your husband and daughter. I'm off to get mine from school.

 

DDxx

 

It's always good to lose weight although I'm personally not so keen on the sleepless and stressed diet.

[reallyworried]

Thank you for everything, I will no doubt be back tomorrow. I know not good but had a glass of wine and a nice hot bath.....I'll be fine until about four in the morning. Brains really should have a off switch. Just going to have to put it out my mind and deal with as and when.

 

DD, I really cannot thank you enough for your help today xxx

[Desperate Daniella]

I'm very happy to help if I can. I know what it's like and it's scary.

 

I'm glad you've had your wine and a nice bath - it's important to try and relax. I hope you get a good night's sleep, but if you do wake up at four and you are awake for more than half an hour please read for half an hour or so to take your mind off it. You keep thinking, "I must sleep," but as you are likely to be awake anyway it's better that your mind is on the plot of a book rather than HRMC. One of the best things I ever heard, and it is absolutely true, is that your mind can only deal with one thought at a time. So if you are reading then you can't be thinking about anything else. It's worked for me so many times. Sometimes I haven't gone back to sleep, but I wouldn't have anyway and at least I didn't spend three hours worrying myself sick about it all.

 

Please let us know how you are doing tomorrow.

 

DDxxx

[reallyworried]

I don't doubt I'll back tomorrow.

 

Thanks for your words of advice. I guess going on line at 4am to see if anyone else in my position is not a good idea either as still then thinking about it. Think I am going to try get a early night, I feel so weary and my eyes sting so just need to shut them.

 

I keep reading your words back that all will be okay.

 

Hope you have a lovely evening xxx

[Desperate Daniella]

No, it's not a good idea to go online at 4am although there are some night owls here. Anyway, people who do that always find horror stories on the internet, rather than this forum, which actually have NO relevance to their own situation and they usually misunderstand them anyway and get into a terrible state.

 

Don't worry too much about losing a couple of nights' sleep because eventually your body will take over and you will sleep.

 

I'm going to eat and flop in a minute. xxx

[Desperate Daniella]

But I'll check back later in case you are worried about anything else.

[scotgal68]

Have you received your renewal pack for this year yet? x