Tax credits and childcare confusion

helen4377

Hi there,

I have just got off the 'phone to tax credits and am completely confused.

Due to my child now getting her 3 year old funded place my childcare costs have gone down by £40 a week from this coming week. So I have rang them to advise and they said I have 4 weeks to tell them and to call back on 7th December. My childcare has changed before and this has never happened. I did ask if this would cause an overpayment (I live in fear of these and am meticulous in telling them of changes to my situation) and he said no.

I did ask him to explain and nice though he was I am still not sure. Could someone explain in words of one syllable please :rotfl:

If I don't reply straight away I do apologise, I have lots of 2 year olds coming to my house for a party and I am trying to organise!

cw18

The booklets say

"Your child care costs go down

If the change reduces the amount of tax credits you are entitled to, we only reduce your award after the first four weeks of the change. You must tell us about the change within one month, otherwise you may be liable to a penalty"


I would have thought they could take the details from you now though

[Deleted User]

They can take your details now - the adviser has possibly just been a bit lazy as he would have had to send a referral off to the processing office as it is a future change of circumstances.

It is a future change of circumstance because for 4 additional weeks TCO will continue to pay for the higher amount of childcare.

Don't worry about it and just call 4 weeks after the costs actually ended.

helen4377

Thank you both for your replies. It just seems illogical to me really. In essence I am getting £160.00 more than I should (4 weeks at £40 extra). I am not going to quibble.......as long as I don't get an overpayment!

[Deleted User]

Some people may need to give notice that they are ending childcare and so it is paid for 4 additional weeks.

So that it is fair to everyone, the 4 weeks run on is paid to everyone.

kurjam

i had the same happen to me in august, my childcare went down but they told me you get a 4 week run on at the higher rate, which i did, i then rang them 1 week before the 4 weeks was up to tell them that it had gone down, as i was told they would put it on the computer 7 days before the 4 weeks is up...so my award can be updated in time...dont worry it wont be classed as an overpayment, you can put the extra towards xmas !!