Child tax credit, don't think it's entirely my fault

[melandra_x]

I became redundant Nov 2009 and I informed tax credit, I trained and became a registered child minder in April 2010 again I told tax credits, at no point did I tell them that I required child tax credits, however they started paying me £105 per week. I received my tax credit summary and like most years I did not look at it. I had no idea that I was receiving this payment at all, I received a letter from the tax credits just doing a spot check asking me for details of my childcare provider, if you knew me you would understand what am I like. Also one of parents of the children I was caring for told me her voucher payment to me didn't go through to me, me being me didn't even notice, she asked me to check bank statement and that's when I noticed the amount being paid to me!! I rang the tax credit office and told them that I didn't ask for childcare benefit. I rang again and they said that a decision will be made in due course. I followed it up with a letter as the payments were still coming. I think they've stopped as I checked my balance of my account and it was a lot less than I thought I had. I am about to receive a letter stating that I have had a year of tax credits which I was not entitled to and I will have to pay it back, I told them to check back at the recording of my conversation and they will see that I never asked for child tax credit. Paying back this money will be highly impossible as I have not got any savings what so ever and to top that I have lost one of the children I was caring for and have just one child now! Do you think I will have to pay back the full amount??

[itiswhatitis]

I am not an expert on tax credits, just someone who receives them myself, but yes as a layperson I would expect you would have to pay them back. It clearly states that it is the responsibility of the claimant to check all info is correct on the award claim and that you will incur an overpayment if info is incorrect. I scrutinise mine with a magnifying glass! On another note I cant understand how you ended up getting childcare tax credit without providing an EY number and address of a registered minder (I am a registered minder myself so know how that bit works!)?

[melandra_x]

Thanks for responding.

I previously used a registered child minder, tax credits people assumed I was using them again when I started back at work, however they should not have had this assumption! When you renew by phone or advise of change of circumstances, surely the questions should be asked. Paying back a year's child tax credit will financially finish me! I rang them and told them that I believe that I was getting too much money and they confirmed that they have this conversation on record, I was told it was correct without them asking me my circumstances. I think this is their fault, I notified them before they contacted me!

[itiswhatitis]

Hi Melandra, wow that sounds tricky! I assume then that they have continued paying you childcare tax credit since you were made redundant if they are still using yr old minders details? If they have yr conversation on record I guess it will prove you didnt initially request childcare when you became self employed as a minder but I fear they will still say you are liable to repay as it will have been stated on your revised award notice - which you will have received when you advised of change of circs - that you had been awarded childcare tax credit? As I said I know for sure that it is the responsibility of the claimant to check their award notice and this is clearly stated on all docs, however I also know from my clients' experiences that it is too easy to be landed with an overpayment of childcare tax credit as the systems dont appear to be set up to flag potential genuine errors on the part of the claimant. As I say to all my clients check, check and check again when any award notice comes through! I am no expert though so hopefully someone will come along who has more insight from a professional perspective. Good luck x