Tax Credit childcare claim under review

[luckyme1609]

Hi

 

Wondering if anyone can help and has been in a similar situation.

 

I have today received a letter from the tax credit office telling me that my claim is under review for 2010 - 2011 and they want me to provide copy of childcare contract and receipts for the whole tax year.

I am registered as self employed and they are also asking for all information to do with my business, invoices, UTR number, details of adverts, breakdown of work done, customers contacted etc . I can provide them with all this information but have a slight problem... I have claimed more childcare than I should have as my child started school and I didn't ring to inform tax credits that my child care costs had reduced. furthermore my work has dried up and I haven't had any orders since July last year however I have been working in the sense that I have been handing out flyers advertising the business and travelling around looking for work - I have also been building a new website. I did say that I was working 30 hours a week initially to tax credits but in reality it's probably been about 16-20 hours since orders stopped coming in....

 

I am more than happy to provide them the information they are asking for but know that I will have been overpaid for not informing them about changes in circumstances.

 

I fear that this overpayment will be in the region of £15k at the least.. .

 

Does anyone have any advice on what I should do and what will happen to me.

 

What happens when I send the information back will they just look at it and contact me to let me know what the overpayment is and ask for it back or will I be investigated further?

 

I am terrified of going to prison and terrified of loosing my children. I should have rang them sooner to change my information but never got round to it and I know I've done a terrible thing but I am really regretting it now.

 

I advise anyone fraudulently claiming tax credits to get in touch with them sooner rather than later.

 

If anyone has been in a similar situation to me can you let me know what the process was after you sent the requested information back and what the outcome was.

 

Thanks

[Life-Goes-On]

You do have some good news, claiming fraudulently from HMRC (tax credits) there is less chance of being charged with fraud, than if it was the DWP (would say almost certain with DWP for £15K)

 

Not saying you won't be charged, but less likely.

 

Best thing to do is to be totally honest with them and cooperate fully.

I believe there will be a penalty (a percentage) as will as the overpayments.

[rebel11]

Hi lucky

 

Welcome to CAG

 

The guys will advise as soon as they are available.

 

Best thing to do is get all the relevant information together. Don't let the mind race away, thinking the worse is going to happen because it seldom happens.

I think you need to speak to a solicitor, get some free advice. If you have any interviews then you must take one along, he can find out what info they have

before an interview.

[luckyme1609]

Hi

 

Thanks for your replies.....

 

Do they usually interview you then? I'm terrified about it all..... worried about losing everything.....

 

What kind of interview would it be?

 

They haven't asked for bank statements or anything though and i thought they would have - they've just asked for info about my business and childcare receipts.

 

I fell like just ringing and owning up to everything in the hope that they will be less severe with me.... I will be fully compliant with them and send them everything they ask for....

 

The whole situation is a complete mess - they have also written to my childcare provider asking her to provide information too.....

[jadeybags]

will they just look at it and contact me to let me know what the overpayment is and ask for it back

 

More than likely at the moment, yes.

 

Do they usually interview you then?

 

Have not heard of that happening yet to be honest.

[Anotherbadday]

Hi Luckyme

 

I too have had a letter 2 days ago, and am in a simalar situation too you, can you let me know where you are upto with your review and what procedures they have taken , i am also thinking that i will lose my children

 

Many thanks

 

 

 

Hi

 

Wondering if anyone can help and has been in a similar situation.

 

I have today received a letter from the tax credit office telling me that my claim is under review for 2010 - 2011 and they want me to provide copy of childcare contract and receipts for the whole tax year.

I am registered as self employed and they are also asking for all information to do with my business, invoices, UTR number, details of adverts, breakdown of work done, customers contacted etc . I can provide them with all this information but have a slight problem... I have claimed more childcare than I should have as my child started school and I didn't ring to inform tax credits that my child care costs had reduced. furthermore my work has dried up and I haven't had any orders since July last year however I have been working in the sense that I have been handing out flyers advertising the business and travelling around looking for work - I have also been building a new website. I did say that I was working 30 hours a week initially to tax credits but in reality it's probably been about 16-20 hours since orders stopped coming in....

 

I am more than happy to provide them the information they are asking for but know that I will have been overpaid for not informing them about changes in circumstances.

 

I fear that this overpayment will be in the region of £15k at the least.. .

 

Does anyone have any advice on what I should do and what will happen to me.

 

What happens when I send the information back will they just look at it and contact me to let me know what the overpayment is and ask for it back or will I be investigated further?

 

I am terrified of going to prison and terrified of loosing my children. I should have rang them sooner to change my information but never got round to it and I know I've done a terrible thing but I am really regretting it now.

 

I advise anyone fraudulently claiming tax credits to get in touch with them sooner rather than later.

 

If anyone has been in a similar situation to me can you let me know what the process was after you sent the requested information back and what the outcome was.

 

Thanks

[luckyme1609]

Hi

 

I sent my information to them last week but haven't heard from them yet and they are still paying me at the moment. I did put with the letter a list of changes i needed to be made to my claim for it to be correct and sent my renewal pack with it.

 

I am too scared to ring and speak to anyone as I know I will end up in tears - saying that I do feel much better now that I have sent the information and owned up - I'm just hoping that they go easy on me - I know what I have done is wrong I just hope that they will make me pay back anything extra that I've had and wasn't entitled to - as soon as I hear back from them I will post a reply on here to let you know what has happened.

 

I was worried sick for over a week when they sent me the letter and I'm still worried now wondering what the outcome will be - but I sent them everything they asked for.

 

Let me know how you get on and good luck x

[albownumber3]

I'm in a similar situation unfortunately. My childcare costs ended a year ago when I started maternity leave, but I carried on claiming. I know it was daft (and wrong of course) but really needed the extra while I was on maternity. When I renewed my tc I did tell them about the change, but they told me I had to contact the 'compliance officer' in the letter I'd received asking for details of childcare since Jan 2011, but when I phoned them I was told I had to put it all in writing. I've sent the letter today explaining what my circumstances really were and apologised for not informing them earlier. My deceit only applies to 8 months of last year's award and I reckon I've been overpaid by about £2000.

 

I've been googling this and apparently they're checking up on around 75% of parents claiming child care costs, so we're certainly not alone.

 

I'd be really interested to know if you've heard anything yet? I'll post when I get a response.

[luckyme1609]

Hi

 

I sent my info back to them about 12 days ago now and owned up completely to claiming more than I should've but I haven't received a reply from them yet.

 

I'm still worried about ti - but not as worried as I was when they first sent me a letter.

 

Have felt better since I replied owning up I'm just hoping that all they will do is send me a letter stating my overpayment amount with a penalty and then I can arrange to pay it all back - I think my overpayment will be a great deal more than yours.

 

As soon as I hear back from them I will put a post on here to let you know the outcome.

 

Good luck.

 

Luckyme

[albownumber3]

Well I got my letter from TC today. It simply said "I do not believe that you were paying £104 for child care from April 2010. Therefore I have amended your award." Quite simple and much more painless than I imagined. Hope it's going well for you Luckyme.

[luckyme1609]

Hi

 

I haven't received a letter from the compliance officer yet who I sent my information to but I have received an up to date award notice which states they have reduced my payments and my overpayment is £2800, was expecting the overpayment to be much higher than this.... so am relieved.....

 

Should I expect a letter back from the compliance officer - on the initial letter she sent me it did say that once she'd finished her enquiry she would return my documents that I sent back to me.... but I haven't had anything from compliance just an award notice.

 

Glad you got yours sorted.

 

Lucky me

[onlyme79]

Does anyone know how exactly you know when the enquiry is finalised?

Do they send you a letter/say this over the phone?

Or can you assume once repayment is sorted - that the enquiry is also sorted?

 

Reading some of the posts recently, it seems they are not saying anything either way.

[luckyme1609]

Hi

 

Just looking for some further advice - i did post previously to ask but haven't had any replies.....

 

I sent all my information off and have recieved an up todate award notice stating my overpayment and my current amounts so from that I have assumed my enquiry is finalised however in the intial letter I had from the compliance officer she stated that she would write to me when she had finished her enquiry with her decision and would return my documents i.e childcare receipts etc... I have not had these back yet and it is almost 2 months ago since I sent them to her (i'm assuming with my payments being altered and having the award notices that she has finished) Just wondering what has happened to others and if you have had your documents sent back to you.

 

Thanks

 

Lucky Me x

[backofbeyond]

Firstly - I really wouldn't panic LuckyMe. Everything with the tax credits is taking longer this year because of their extra checks. I would say that having your new award means that your claim has been finalised. With regards to the compliance team, the letter may have been lost in the post? Just a thought. Why not just give them a quick ring and ask them for your documents or if they've been sent? You've done the hard part and IMO have NOTHING to worry about as your award has been amended.

[luckyme1609]

Hi

 

THanks for your reply..... I'm hoping it has been sorted and finalised and assume that it has due to me having a final award notice sent for last year detailing my overpayment and a new current year award notice - I'm just terrified to ring - I couldn't ring them when they first wrote to me and done everything in writing - but I do need the stuff back as I sent my original documents including my company certificate of incorporation and childcare receipts and also invoices and receipts for work done so I will need these all back to complete my tax return - maybe I will drop her another letter just asking if she has sent my information back

[backofbeyond]

I'd ring, honestly I would. You've done the hard part and it's obvious it's been sorted with the new award and the overpayment. Corresponding with HMRC in writing is an absolute nightmare and if you did you'd have your mind finally put to rest.

 

I know what it's like - I like lots of others am awaiting for my renewal to be processed and it is taking an absolute age! If you don't mind me asking how much are they deducting per month / per week for your overpayment?

[luckyme1609]

Hi

 

No don't mind u asking at all - they have deducted about £30 a week I think.... so not too bad considering I owe £2800 - i think it will be carried over to next tax year too.... Maybe I will ring on Monday - no harm just asking where my documents are really is there? I just don't want to be questioned by them over the phone - was in a right state over the whole thing when I received the compliance letter and had many sleepless nights and I do not want to go through that ever again.

[backofbeyond]

£30 a week, roughly what percentage is that? Just wondering as guidelines state either 10% or £25%.

 

Honestly you'll be fine if you ring them - if anything think once you've been on the phone to them you'll be relieved!

 

Have a good weeked! I'm still in limbo with my tax credits renewal so still playing the waiting game and waiting to see if my payments are reduced etc.

[luckyme1609]

It's 10% but I haven't received any info about a penalty or anything! This is the thing that is worrying me - all I have received is an up to date award notice.... none of my info back and no letter to say the enquiry is finished even though in the initial letter I had from the compliance team it stated when she'd finished her enquiry she would write to me

[backofbeyond]

Think us women are designed to be worriers lol. Honestly, I'm sure you'll be fine