Various TAX CREDITS issues - help

[blacknwhite]

Hi all, Im new to this forum and can see a lot of people have a problems with not declaring changes in their circumstances.

 

I have been recieving £125 per week towards childcare costs but my payments are only £82.50 on average a week, they also have the wrong childcare provider on file for me. I have recieved a letter asking me to send conract and all reciepts for payments.

I can provide a contract and proof of payments BUT it wont match the childcare provider details they have on file for me.

I changed my childcare provier in Aug last and didnt tell them of the change, do I phone them and make them aware now or do I just wait until they come back to me and say it doesnt match the details they have on file.

 

I did call in Aug to change my bank details but didnt inform them of the new childcare providers details. Do I phone and say I think there may be a mistake on my claim relating to childcare? or do I play dumb until they do the checks. I havent had any gaps in childcare just changed the provider from a nursey to childminder.

 

PLS HELP I dont know what to do for the best. Thanks in advance.

[Life-Goes-On]

Fraud is knowingly (or you should have known) claiming money that you aren't entitled too. So it could be classed as fraud

 

But the good news for you HMRC don't usually go down that route, all they want is the money back sometimes with a penalty.

 

The best thing to do is contact them, admit the mistake and cooperate with them.

 

You then will get an overpayment lettter stating how much you were overpaid, and any penalty they might add.

[blacknwhite]

Thankyou- but what do I say when I call them up to amend the changes? Do I tell them they have the incorrect deatils or do I say I THINK YOU MAY have the incorrect details on file. What happens when I send all my documentation in? will they contact my childminder just to confirm eveythin I have sent is correct

 

Im worried incase I get prosecuted, Im a single parent with child, live on my own and have no family around as they have all relocated to Canada (I am british, my family just emigrated) there would be no one to look after my son if I went to prison. What would be the chances of this? Im really worried and have just got myself back together after suffering from severe depression and dont ant to go back down that route again.

[Life-Goes-On]

Put prison out of your mind, that certainly won't happen in your case.

 

Tax credits don't normally prosecute, if so normally because there is a history of fraud, or the person fails to cooperate.

 

They will look at it more favourably if you are totally open and honest.

 

Ring up and tell them that the figures are wrong and you will supply the correct info.

They might contact your childminder, but that's normal, they can do that at anytime to check.

Just tell them you made a mistake

[blacknwhite]

Thankyou!! I will contact thm and let them know of my mistake, do I call the tax credits helpline or do I call the advisor who sent the letter re my claim under review a it is a dirnt number. what else will they be looking at on my claim? All they have asked for is info re childcare, do I need to send anything else? or are they just reviewing my childcare situation and thats why they have asked for just childcare details?

[Life-Goes-On]

It sound like it could be just a random check.

As long as the childminder confirms everything, you can just expect an overpayment (with a penalty) and no further action.

Is your childminder registered?

[blacknwhite]

yeah she is registred, I have a copy oh her OFSTED number and I haave told her I recieved a letter from them as I normally pay cash in hand so I hd no proof to give them but I have explained to her I need reciepts/ invoices to prove I have paid her, I have never missed a payment

 

I pay £70 week termtime and £125 week when school holidays. Are my calcuations of £82.50 on average a week correct when you take the school holidays of 13 per year into consideration as some of the invoices/ recipts I will be sending will show £125 per week paid where as others will show £70

[Life-Goes-On]

Explain all this when you call and send in all the paperwork.

 

Make sure you post when you get overpayment letter, as someone will be able to check if it's correct (not me as I can't work that stuff out)

[Nystagmite]

I pay £70 week termtime and £125 week when school holidays. Are my calcuations of £82.50 on average a week correct when you take the school holidays of 13 per year into consideration as some of the invoices/ recipts I will be sending will show £125 per week paid where as others will show £70

 

The following is probably relevant to you:

You pay - or expect to pay - different amounts

Sometimes you may pay - or expect to pay - different amounts for childcare (known as 'variable costs'). For example you regularly use childcare, but may pay more - or less - during school holidays than you do at term time. This could be because the hours you use childcare for change from week to week or month to month.

Work out your costs as follows:

add up how much you have spent in total over the last 52 weeks (or 12 months if you pay monthly or any other frequency) - start backwards from the date you're doing the calculation

divide this figure by 52

round up your answer to the nearest whole pound

 

http://www.hmrc.gov.uk/taxcredits/start/claiming/claim-children/childcare-costs.htm

[blacknwhite]

Well Im ready to send the reciepts and contracts in to HMRC for claiming too much childcare and also not updatng my childcare provider details.

 

Along with the documents they have asked for I want to send a covering letter explaing that I changed provider (childcare) and my payments are incorrect. I claim £135 week but my payments are only £70 week term time and £125 week school hoildays

 

What I would like help with is the letter.

A- How do I word it

B- What do I include in the letter

C- The layout

D- What key info do I include in the letter

 

I havent had the bottle to phone the tax credits helpline and advise them but am going to do it this week for definite, should I include the time, date and the advisors name in the letter once I have called and admited to my mistake?

 

Im just not sure about what to put in the letter, any elp would be apreciated.

 

Thanks people

[honeybee13]

Hello there. Have you spoken to the CAB about this? They would probably help you write a letter.

 

We seem to be a bit thin on the ground here today, sorry.

 

My best, HB

[blacknwhite]

Hi, No I havent spoke to CAB, My little boy has chicken pox so Im unable to leave the house and I have nobody to watch him at all as my family live away.

 

Thanks

Edited June 27, 2011 by blacknwhite

[blacknwhite]

well I sent all the docs that HMRC requested, invoices and contracts. I phoned the normal tax credits helpline to update my childcare provider and costs as these changed Aug 2010, I was told I had to call the advisor dealing with my claim.

 

I called the number which was on my letter and the lady wasnt at work today so I spoke to a gentleman and told him Id sent all the paperwork requested in the post today. I the told him I needed to update my childcare provider and weekly costs as they changed and havent been updated, he told me he wasnt able to do this but didnt give a reason why he couldnt. why would this be?

 

Why arent I able to provide the correct details to the tax ofice so my claim can be amended and corrected? I did send a letter xplaing they have the incorrect details on file or my childcare provider and payment costs and when the change took place.

 

Im confused, Im trying to rectify the situation, why wont they take the new details from me? As I said I have enclosed the new OFSTED no and start date etc in the letter I wrote to them

[ErikaPNP]

Tax credit don't tend to update any information whilst your claim is the subject of a compliance/review check. Once the check has been completed, they will send you a letter advising you of this and then they should update your information. It's quite common, and has happened to me. Once the letter is received to advise that the review is complete, I do encourage people to double check that their information has been updated if they have declared a change.

[blacknwhite]

I need advice re local housing allowance, Im a single parent of a child aged 5.

I do get tax credits inc wtc

(my claim is under review at min)

 

I have a low wage and would like to know if I qualify for LHA. I currently live in my parents house but they no longer live in the UK. They have the mortgage to pay on the house Im living in as well as mortgage paments in Canada where they now are permenant residents.

 

Thier financial circumstances have changed so they now require me to pay rent (I have been living here rent free so far) I would like to know if I would be able to stay at my current address and claim LHA towards the rent that I have to pay.

 

My parents are going to have to rent out the house either way but it would be so much easier for all of us if I continued to live here and pay rent and sign a contract. They also dont want the hassle of renting the house to somebody they dont know and with them being so far away they wouldnt be able to make sure things are kept in order with tenants they didnt know/trust

 

I do recieve council tax benefit as Im living as a single person with 1 dependant.

 

 

My sons school is 50yards from the house and we are both settled here. I dont have any other family in the UK so do get some help from my neighbour. So it would be harder for me and my son if we did have to move to a street where we didnt know anyone.

 

would I be able to do this?

[CDJ755]

Hi. I once looked into this with my Local Authority and they said they could only pay me Housing Benefit and treat my mum as landlord if she had had previous unrelated tenants in the property before. In other words they would only accept your Parents as your landlord if they could prove they have previously been a landlord to other people who are not just relatives.

 

This was a while ago now tho and it could be that all Local Authoritys have different rules but that was my experience with mine.

 

x

[blacknwhite]

They have'nt been prev landlords as they were living in the property until they emigrated to Canada. Silly thing is Id have to move out, look for a new place and apply for the LHA at the new property so either way they would be paying LHA if I were entitiled to it. Makes sense for me to carry on living where I am. less distruption to both mine and my sons life. I dont have the cash for a deposit on a new place either.

 

x

[Nystagmite]

There is something called contrived tenancy.

[morsy]

The standard test most LA use is previously rented to non related tenants as prevoius poster outlined.

 

You would be best off discusing it with your LA as they would be able to advise firstly if you qualifiy and secondly for how much. If they were paying a relativly low amount of LHA then you may be better off not bothering with claiming LHA if you can aford not to and stay put.

 

Other wise you would have to move and you could make that case to the LA, but I think they would still not allow a claim for LHA.You may also aruge you would be homeless and suggest that they need to house you? Not sure how that would work out.

 

Under the rules, as I understand them, if it is just you and your child then you would only be allowed a 2 bedroom property and the rent would be based on the 1/3 average price of a 2 bedroom rental proerties in your area. If that makes sence.

[CDJ755]

It's so frustrating I know. The Housing wud rather make you uproot your whole family and cause so much disruption and only end up paying the you the same amount of benefit (or maybemore!) at another property!!

[morsy]

yep unfortunatly thats the benifits systems ... and now with LHA cuts more people will find they get less LHA and have to move to cheaper properties. Many landlords wont take tennants on LHA and many rents are above the LHA they get making them homeless.

[id6052]

how much rent are they charging you?

[blacknwhite]

£525 pcm

[blacknwhite]

I posted recently regarding the childcare compliance letter I had recieved. I didnt declare the change in my childcare provider or that the costs are decreased.

I have spoke to the compliance officer today and she has told me my award will now be finalised and details for the new chilcare provider updated.

 

They had been waiting for a response from my sons prev childcare provider. I sent all info back 4/7/11 and it was signed for on the 5/7/11.

 

I know there will be a overpayent but I dont know how long it will now take to finalise and get the new figures for my CTC/WTC

 

Not sure if she works this out or wheter the system does, she was very nice on the phone and friendly. Glad its all sorted Im just dreading the letter Im about to recieve re my new amounts.

 

Its just a waiting game again for me but at leeast I know they are taking it any futher and my tax credits havent stopped. Not sure how long I will have to wait for the paperwork with the amended details.

 

Once I have recived update re to new payments/ overpayents I will update again

[dx100uk]

5 threads on tax credits merged

 

please keep to one thread please

as all your questions are linked

 

dx

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