Help..!! Childcare Overpayment by £7k.. Am I going to Court??

[wizardhead]

I am so glad I found this forum... What a fantastic job you guys are doing... Kudos!!

 

I'm so glad to read I'm not all on my own.

 

I really hope someone here can help me out with this:)

 

 

Today I recieved a letter from HMRC. I have been selected for review regarding

my Chidcare Charges.

 

Apparently the information that I have given them doesn't match the information

they hold on me...

 

I apparently told them my average childcare costs were £200 a month but when

they checked with childcare they told them it was £70..

 

 

..... I have 3 children that were all in childcare until Sept 2012.

 

My eldest lad started school so I told HMRC that I no longer required

Childcare for him but my other children were staying in childcare and my

costs were being reduced.

 

I phoned them in Aug 2012 to update this as part of my Annual Award Renewal.

 

I am 100% that I told them my average costs were going down to £100 a week

from £200 a week.... This was over the phone and he confirmed it back to me

that this was the case.

 

Clearly whoever dealt with me over phone didn't update this on the system.

 

I don't remember receiving the award notice afterwards. I had a lot going on

at the time so forgot to phone and query... I just assumed after the guy on the

phone dealt with it then it was all updated for new year...

 

I now worry that I have been overpaid nearly £7k...

 

 

They have told me if I don't contact them within 7 days that they will

just amend my award with the new information that they hold..

 

They also state that I may have made an error therefore could be asked

to pay a penalty.

 

 

What is the best course of action??

 

Are they part responsible for this mistake??

 

Will I be dragged in for interview under caution??

 

I can't afford to pay this back... Will they write it off or am I in serious trouble??

 

What would you recommend I do... They are still paying me the normal amount??

 

Is this going to go to court???

 

Really appreciate the help everyone... THANKS

Edited May 18, 2012 by wizardhead

[Nystagmite]

I can't afford to pay this back... Will they write it off or am I in serious trouble??

 

They may take it from future awards.

[wizardhead]

How best should I explain to them that they made the mistake over phone and hadn't

updated my claim with new details provided...

 

Do they actually record all phone calls??

[Gbarbm]

Hi

Google COP 26. This is HMRCs code of practice relating to overpayment of tax credits.

You could also make a subject access request for a transcript/copy of the call you made regarding the change in circumstances in respect of the Childcare and a copy of the notes made on the computer by the advisor at the time of the call. You would need to provide the telephone number from which the call was made and the date/time of the call if known.

[wizardhead]

I probably couldn't remember the time or day.. Not something I'd personally

make a note of.. Will be doing from now on though:(

 

So honestly what do you guys think will happen.. From experience and

hearing from others on the forum do you think they will interview me under

caution...

 

You don't think they'll think it's a criminal issue??

 

How normally do they deal with this type of overpayment.....??

 

I am contemplating sending them a letter detailing their computer error and not

receiving the confirmation. I know some of it is on me for not realising but surely

they've got to be lenient..

 

How much can they possibly take if my payments have dropped to £70...

 

I earn a joint income of £30,000 a year with mortgage and 3 very young

children?? Me and my wife both work...

 

What should I write in the letter obviously being careful not to take full responsibility..

 

What steps should I make..

 

Any help will be great... Again really appreciate it... Thanks

[Stan Lee]

If you can't find the relevant phonebill (and given your situation, I would be leaving no stone unturned looking for it), then perhpas a phonecall to your phone provider might be in order, to see if they can reissue you with previous bills. I don't know if they can do this, but it's worth a try. I'm a absolutely no expert on this, and there are posters here who are government or ex-government employees who are far more knowledgeable about this than I am, but my understanding is that if you can point to a phonebill and say that you told them at this time and date, then that will go a long way in your favour. Of course, as Gbarbm has pointed out, the next step is the SARS request to find out what information they have about this. I'm sure from reading around on this site you'll see that the overpayment and a fraud investigation are not necessarily synonymous, that is to say, you could be cleared of any deliberate intent and still potentially have an overpayment to pay back.

[Stan Lee]

I probably couldn't remember the time or day.. Not something I'd personally

make a note of.. Will be doing from now on though:(

 

How much can they possibly take if my payments have dropped to £70...

 

I earn a joint income of £30,000 a year with mortgage and 3 very young

children?? Me and my wife both work...

 

What should I write in the letter obviously being careful not to take full responsibility..

 

What steps should I make..

 

Any help will be great... Again really appreciate it... Thanks

 

Oh, you could also google your local Welfare Rights office and set up an appointment to speak to them about the contents of drafting a letter, as they may well experience in this field. (A CAB adviser told me he regularly dealt with clients who had accrued Tax Credit overpayments in the ten grand region.)

[wizardhead]

Thanks everyone... Gonna try track down the phone call...

Never had paper bills and with Virgin so maybe online...

 

 

In the meantime has anyone gone through similar or seen results of similar..

 

If you know of any other threads knocking around the forum of a similar nature please

let me know the links.. I've had a little look around but might have missed some..

 

Thanks

[Gbarbm]

If HMRC have made an error (which it appears they did as they failed to make proper and timely use of the information you supplied them with) then there is every possibility they will remit the overpayment.

Get a subject access request in... As long as you can supply them with the number you made the call from they should be able to trace it

[wizardhead]

Just thought I'd come and update thread -

 

Contacted Compliance team and spoke to a lady who seemed to understand

the simply error. She made me feel at ease and told me my case worker would

come to a decision.

 

I asked them if I was going to end up in court or done for fraud.. She said no and

that I'd have to pay it back in installemts most probably...

 

Today also had another payment off them so they haven't stopped my money either.

 

Will let you know when I hear from them:)

[Gbarbm]

Thanks for updating us.

Well... You must feel a bit better about things now so well done, its not easy making that call but you did it and I've no doubt you'll have a better nights sleep tonight.

The payment you received was probably sent out on a payment cycle and will be sorted out when everythings been checked

 

Kind regards

 

Gbarbm

[Kirsty2504]

Just thought I'd come and update thread -

 

Contacted Compliance team and spoke to a lady who seemed to understand

the simply error. She made me feel at ease and told me my case worker would

come to a decision.

 

I asked them if I was going to end up in court or done for fraud.. She said no and

that I'd have to pay it back in installemts most probably...

 

Today also had another payment off them so they haven't stopped my money either.

 

Will let you know when I hear from them:)

 

 

Hi, was just wondering how you have got on? I had a letter from the compliance team about my childcare and that I owe them £7000!!!!!! They are currently taking the money out of my weekly payments but I received a letter saying that criminal court proceeding may take place in our case?! This has scared the absolute crap out of me.

 

Hope you got it sorted?