Child Tax Credit Compliance letter

[joolyc]

Hi everyone,

 

This is my first time on here and I hope that somebody can offer some advice. From reading some threads it appears that lots of people are experiencing the problem I have at the moment.

 

BAsically I received a compliance letter a couple of weeks ago regarding my childcare provision.

My children were in full time care with a childminder from Jan 2003 until Jan 2009 and these details were provided to the tax office. In Jan 2009 we moved the children to a childcare provider closer to their school who advised me that she was registered. We did not however get her registration number nor advise the Tax Office of the change. In September 2010, the childminder moved from the area and my mother started looking after the kids - again we did not advise the tax office. Stupid I know, but my husband is self employed, has had no work for months and basically we used the money to buy food and essentials.

 

After a couple of weeks of sleepless nights I telephoned the tax office this morning and came clean. They didn't say anything - just asked me to provide details in writing which I have done this morning.

 

Has anyone any idea how this is likely to pan out - I haven't really seen any outcomes posted on here and am desperately worried. Thanks for listening

[cerberusalert]

Moved to the benefits forum.

[Life-Goes-On]

What seems to be happening in cases like yours.

 

You will get a letter stating your overpayments, also they might be a penalty (any penalty will be less as you made first contact)

You arrange to pay the overpayments back.

[joolyc]

Thanks Life-Goes-On. I had more or less assumed that's what might happen. My big problem is it will probably be quite a big overpayment demand. At the minute, we have absolutely NO spare cash at the end of each month. Do you have any idea how flexible they are with repayment plans?

[watchinginvestigation2011]

One person commented they were being told there was a three year limit on paying it back. Dont know if this is the case though.

[Life-Goes-On]

Sorry, I don't know, hopefully someone will be about to get you some more details adding to watching's answer.

[flumps1976]

I think it also depends on if you still have any entitlement to claim tax credits in your current circumastances. If you do then they will adjust your award reducing it by approx 25% of the current award. This link should help explain how they recover overpayments.

http://search.hmrc.gov.uk/kb5/hmrc/hmrc/results.page?qt=repaying+overpayments

[Lottie77]

I have received a compliance letter so I decided after much stress and upset to ring the number and be honest! The man I spoke with was lovely explained what would happen next. He said he would cancel my claim and then tomorrow I needed to ring the helpline and restart my claim but with the correct details as even though I had claimed wrongly I would have still been entitled to something. He then went in to explain I would get a letter with the amount owed by me in a couple of weeks and then I must sort out a payment plan. They absolutely couldn't have been nicer so don't worry just call and sort it out.

[accountsbanana]

hi, its my first time too. i have been worried too because i have been told that they are doing "random further checks" on my renewal. although reading on the web it means that it has been passed to the compliance officer - which worries me sick! i too havent updated my childcare arrangements and so will be in trouble when they see this!

have you heard anything from them yet since your post on the 17th june and subsequent telephone call??

[joolyc]

Hi everyone - thought I would provide a quick update.

 

I didn't hear anything from them for quite a while after sending them my letter. It was a very worrying time for us as we had guestimated our overpayment as potentially being around the £17K mark.

 

We did receive a letter yesterday which stated that they had accepted our declaration in full and have an overpayment of £4600 which they will recoup by reducing our current entitlement. To say that this is a relief is an understatement!

 

I would just say to everyone out there going through the same thing - DON'T WORRY. We have had countless sleepless nights but feel now that a weight has been lifted off us.

 

The main lesson learned is - Let them know about change in circumstances ASAP!

[lsuk78]

Same here I had a letter saying I had been overpaid by 5 grand and they will recoup it, but this tax year I will only be paying approx £700 and the rest they will recoup over the coming years. My payment has been reduced by about £25 a week which I miss but I can cope with.

 

Joolyc you are very right!

[backofbeyond]

Oh i do hope mine is the same as your joolyc! I'm still awaiting my amended award - I estimate mine to be around £8000.

[backofbeyond]

Well my situation has just got even more bizarre and I don't know what to think

 

As you know I was being "reviewed" with regards to childcare and I sent in full disclosure about 2 wks ago (estimated I owed approx £8000) and I presumed that this "review" was the reason my renewal hadn't been processed because I sent it in at beginning of July and then the childcare letter turned up 5/6 weeks after. Well...........checked my bank as normal this morning and an extra payment has been paid (more than I normally get per week by approx £10) so I called them and was advised that my award had been finalised and it had generated an extra payment and that my weekly figure has increased per week.

 

Now my question / worry is; what has happened with regards to the overpayment I have received?!?!?!?!? If my figures have gone up then it's obvious they are not taking any money back. Does this mean that they are going to recover it in a different way (prosecution etc?!?!?!?!?!?!).