Tax credits overpayment pls help

[treadingwater]

HI Im sorry but my problem is one which is pretty much my own fault. Im really embarrassed about this but looking at other posts I does seem like Im not alone.

 

Ok here goes, I took a promotion last year which didnt make a huge difference to my salary but it was a job I had wanted for a while so I went for it and got it.

 

Thats the easy bit Im afraid. The job involves a 70 mile round trip daily which was ok but as a lone parent my childcare hours had to increase, again that was fine I did everything above board. Then my deputy was sadly taken ill and stopped working. I had to start working longer hours and life got more hectic so i increased my childcare to full time over the hols and informed tax credits who increased my payments.

 

Things were then getting very tough, the increase in tax credits was covering my childcare but as fuel went up so did my outgoings and before i knew it i was spending up to £70 a week on fuel (i have an old car and was in no position to change it).

 

In the autum of last year things started to slow down, my child went back to school and my company were trying to get me some help in work. My child care cost did start to come down as i wasnt using fulltime hours there anymore but there were a lot of teachers training days so my weekly payments were up and down from £75, £88 and up to £105.

 

I was going to tell tax credits things were changing at the end of september, in the 30 day time limit from when the fulltime hours stopped, but as things were still up and down and i was now using credit cards to meet basic needs so i left it as it was, reasoning there were more hols coming up and i would need fulltime childcare again.

 

This went on untill feb this year then after the half term i bit the bullet and told tax credits my childcare costs had gone down. I was so glad to do it as I knew my average cost wasnt what i had said while paying fulltime hours and was so scared of getting in trouble. But now I have been picked for a review and I know Im in trouble.

 

Im going to ring them and tell them everything before the deadline they have given me, and in a strange way it will be a relief. Im still in a mess with credit cards etc but Im treading water and cutting back so I dont go under.

 

What i want to know is will my tax credits stop? the summer hols are round the corner and i will be going back to fulltime childcare hours again so without that money i have no idea how i will cope. Im trying to stay calm and know i will have to pay the money back about £1200 i think, but if they stop my award im sunk. Thanks for anything you can say to help.

[treadingwater]

Hi i posted yesteday about my tax credits problem and i just wanted to ask again if anyone knows if tax credits will stop payments when i tell them i claimed too much? ive tried a few other websites but they are much more judgemental than this one. i know what ive done is stupid by not telling them my costs went down straight away, i dont need to be told im a leech, may face prison etc as other sites have told me. i just need to know if i will carry on getting tc at a reduced rate as i pay it back or do they stop it alltogether? i just need to know how bad things will be thats all, i plan to fix my mistake.

thanks.

[watchinginvestigation2011]

Depends on how much overclaimed compared to time limit they allow for repayment xx

 

As much as on here people may have their views too, no one will personally judge you, post away. Site team is also very good at steping in withe inapropriate posts xx

 

Those in the know will be along later xx

 

I have requested site team to join both threads together and hopefully you will get answered soon Keep looking in.

[watchinginvestigation2011]

BUMP up the cue xx

[Nystagmite]

They may deduct a certain amount from future tax credits payments.

[ErikaPNP]

i just need to know if i will carry on getting tc at a reduced rate as i pay it back or do they stop it alltogether? i just need to know how bad things will be thats all, i plan to fix my mistake.

thanks.

 

Depends. Look out your most recent award notice. Look under part 2, where it says 'reduction due to your income' and tell me whether it shows:

 

• no reduction
  
• a reduction (you don't need to tell me the amount)
  
• or whether you only get the basic (family) amount of tax credit - this is approx £545 a year.
  

and I'll be able to tell you whether they will stop or reduce your tax credit, and if it's a reduction, I'll be able to tell you at what rate.

[treadingwater]

Hi sorry just come on line. There is a reduction due to my income. Does that mean they will stop them?

[treadingwater]

I would also like to know if they claim back the whole childcare element or the difference between your declaration and your actual costs, or do they just take the whole claim back? this will make a massive difference to what i owe so just want to know how it works please. Thanks again, after reading other posts its really nice to know im not alone and that people are trying to help for no gain at all, maybe this world isnt as bleak as it looks to me right now .

[ErikaPNP]

Hi sorry just come on line. There is a reduction due to my income. Does that mean they will stop them?

 

They can take back up to 25% from your on-going payments for recovery of the overpayment.

[ErikaPNP]

I would also like to know if they claim back the whole childcare element or the difference between your declaration and your actual costs, or do they just take the whole claim back? this will make a massive difference to what i owe so just want to know how it works please. Thanks again, after reading other posts its really nice to know im not alone and that people are trying to help for no gain at all, maybe this world isnt as bleak as it looks to me right now .

 

Again, I can't give you a straight answer in regard to this. It depends on what verification you can provide to them if they request it. If they ask you to verify your actual costs and you are unable to, they may decide that you are not entitled to the childcare element for the period and retract that part of the award. If they ask for verification and you provide it (or they accept your new statement without verification) they will only claim back the difference.

 

Obviously the childcare element will also reduce to your actual entitlement once a decision is reached so you will see a reduction there in addition to the reduction for recovery of the overpayment.

[treadingwater]

I can provide proof of all my costs my child has gone there for years so all payments can be seen. my childminder will also be able to verify my costs if i need her too. Will tc inform her what is going on or should i tell her myself?

[ErikaPNP]

They may write to her to ask her to confirm costs, and may have already done so. In some cases they do, and in others they don't - and they don't always tell you they are doing it. Last time they contacted my childminder I found out by accident. What happened was I had called about something entirely unrelated and the helpline advisor told me that tax credit had sent me two letters which I'd failed to respond to. I informed him that I hadn't received any letters from them aside from the usual award notices and asked for the dates they were sent. He gave me the dates and said they would send one final letter and if I didn't respond to that, my award may be suspended. Again, I told him I hadn't received the letters and asked him to tell me what information he needed, I'd write it down now and send it to him. He told me he didn't know what info was needed other than it was in relation to my childcare costs and I needed to read and respond to the letters. I could tell from his tone that he really did not believe that I hadn't received them, and thought I was trying it on. Trying to tell him that I hadn't received the letters was like trying to have a conversation with my cat. I was talking clearly but he didn't appear to be comprehending much and just responded with the same broken record response. Allow me to demonstrate:

 

Me v tax credit 'help'line:

HIM: We've sent the letters out on x date and x date

ME: I haven't received those letters

HIM: You need to read them and reply to them.

ME: As I say, I haven't received them. What information is needed? If you tell me over the phone, I'll write it down now and get it send in

HIM: I don't know what they have asked for, only that it is about your childcare costs. You need to read the letters and respond to them

ME: I can't read and respond to letters that I haven't received. Can you find out what info is required and leave a note on my account? I can then call back, and once I know what it's about, I can respond

HIM: You need to read and respond to the letters we sent you.

 

Me v cat:

CAT: Meow

ME: Want some food?

CAT: Meow

ME: cuddles?

CAT: Meow

ME: Biscuits?

CAT: Meow

 

Can you see the similarity? Amazing, isn't it? Anyway there I was, getting more and more frustrated with his lack of vocabulary which appeared to consist mainly of the words 'read and respond', so I asked to speak to his manager. He still asked me to read and respond. So I was a bit cheeky which normally isn't like me and asked him, very slowly, to 'Listen and respond' and asked for his manager again. Manager came to the phone (eventually) and problem resolved. Of course I hadn't received any letters. Because they had been sent to my childminder, not to me!! When I spoke to my childminder the reason she had not responded became clear. She had received two letters with an HMRC return address on them, and though sent to her address, were addressed to someone with a completely different name. She didn't even open them, just returned them.

 

But had I not phoned tax credit and got the run around I'd have had no idea that they had written to her.

[Life-Goes-On]

I think you just offended your cat.

[treadingwater]

Hi thank you so much erika sounds like you really know your stuff! Im planning to tell my child minder whats happening anyway, she is on hol for 2 wks at the mo but as soon as she is back im going to see her.

 

Its strange but now ive decided to get it out in the open and tell tc, its already like a weight has been lifted. I know im in trouble and im praying they dont prosecute but i do feel happier already! I know it may sound like a contradiction but i am an honest hardworking decent person. I work my butt off to provide for my child and my biggest regret is being so stupid and playing with our future, if i got sent to prison her world would fall apart as im all she has.

 

If anyone else has gone through anything similar could you please let me know how it turned out. I want to know what to expect.

 

Thanks x

[treadingwater]

Hi I posted on this and other sites a couple of wks ago as Id had a tax credits letter and was in a blind panic as I had claimed fulltime childcare fees during term time for about 6 months.

 

I had some good advice from this site and wanted to let you know what has happened to me. Well today after steeling myself I called tax credits and told them everything. The poor man on the phone could hardly hear me I was blubbing so much!

 

But he was great, he told me it no where near as bad as Id made seem in my head. I have been over paid, as I knew, but he has adjusted my claim for this year with the correct figures and once I have sent in my evidence (bank statements for last year, and letter from my cm stating child care fees etc) I will get a letter confirming the total ammount I owe and a repayment plan taking a % from this years award.

 

I cant tell you what a relief it was to get this thing off my chest! If anyone is in a similar position pls just phone them! I have wasted two weeks of my life stressing over this, my child has noticed my moods and ive not been able to think of anything else, its not worth it!!!

 

I will update when I get all the paper work through so until then thank you so much everyone who adviced or just shared their story on here, I would have gone mad other wise.

 

xx

[onlyme79]

I just wondered - how much is your overpayment treadingwater??

xxxx

[mandy130]

OMG, I just had muscle repair surgery on my tummy and I think I just pulled a stitch from laughing over the whole cat thingy....funny. I hope you get this sorted out OP!

 

Mandy x

[treadingwater]

Not sure exactly what the total is but think its about £1200. I wil find out exactly when I send in my evidence, Im just waiting on a letter from my cm to prove my costs etc.