Tax Credits Compliance - why bank statements?

ella_minnow

Hi all,

I've received a tax credits compliance letter asking for childcare contracts and receipts (don't have those but sure I can get them from my very expensive childcare provider!).

The bit that's got me is the requirement for bank statements going back over a year! Does anyone know exactly why these are required?? I don't mind them seeing evidence of my wages, but I consider the rest of the information in my bank statements really personal.

Maybe this is silly, but I wonder if they can see I've been able to afford to go on holiday last year (first in 3 years), save a bit of money (as is wise), and go out to dinner probably a few more times than Martin considers wise, will they say I don't need tax credits!!??

Also, I have £70 per week maintenance from my ex partner which I don't think I have to declare but I feel like my entire life will be completely scrutinised! Can I block out personal outgoings I don't want them to see (sufficient to leave the amount, but not what it was for..nothing juicy, I just really don't like the idea of someone seeing everything I spend and what on!)

Finally - can they really insist on a year? I might not have every one - what can they do about that? Surely 3 months would be adequate?

Advice, feedback appreciated...

Ella

wombles_forever

Just send them what they are asking for, or they may stop your claim while it is sorted out. If you start blanking bits out they may think that you are trying to hide something and this could cause problems.

If you are entitled to that amount of tax credits everything will be ok. They cannot tell you how to spend your money.

ella_minnow

Thanks wombles - you've hit the nail on the head - basically, if I want to maintain my privacy, it will be assumed by the powers that be that I'm hiding something...

If it's not about what I spend I can't see the problem with blacking out recipients of my outgoings -would they be able to stop my TC if all the info they're looking for is clearly visible? If so, then it's not what it says on the tin, is it..?

If it weren't for the fact that TC are the only thing that makes it possible for me to actually work for a living, I'd cheerfully leave the whole thing behind! It's not about fraud, it's about principle!:A

GobbledyGook

Could it be possibly to see the money going out, especially if you pay your childcare by DD or card?

There seems to be a lot of people who claim, run up bills with childcare providers and then don't pay.

zagfles

I can't see a problem if you block out personal outgoings, but I wouldn't bother, they won't be interested. Just make sure you leave all payments for childcare visible, and all income (it might help if you explain income eg maintenance etc).

They're probably just after proof that you're paying the childcare you claim, and you aren't getting any of it refunded etc. Maybe they have an issue with your childcare provider, are any other customers being asked for the same?

Molly41

I cant see why you would have a problem with your statements being scrutinised. I have just had to go through that process in order to get a mortgage and was even telephoned by the bank and asked to explain spending such as why I was paying off a payday loan - it was my eldest son's. Whilst it annoyed me that i was asked the questions, I had to toe the line in order to receive my money and that is the same for you now. They dont know you personally and there is very strict requirements as regards the safe storage of personal information. My statements were sent back to me.
ETA - it makes it look like you have something to hide if you block out entries. That will raise their suspicions.

happy35

i see loads of peoples bank statements as part of my job and to be honest I look at them for what I need to verify but dont look at how much they spend on groceries etc, dont have time and am not interested

I wouldnt cross out anything on them as the likelihood is they wont accept them, I wouldnt I would ask for another copy.

it will probably be to check that your childcare cost is soming out of your bank account, not claiming for them and not acutally paying any costs

Matthew300

How ridiculous, I pay cash for childcare so why would bank statements show anything?

oliviarosejackson

Maybe ring up tax credits to ask why they need the bank statements. If it is for proof of childcare providers, maybe highlight the information that they are wanting to see. Makes it easier for them and they may not go through all out your outgoings.

As said above though, if you are entitled to it, then there is nothing they can do about it. They cannot tell you how to spend your money.

TaxCreditHelp

Bank Statements have likely been asked for to check on any payments made to childcare providers, as the Tax Credit Office have no way of knowing that you pay by cash without contacting the Childcare Provider direct (which they frequently do). I would advise you to comply with their request in full and not to worry about any personal payments shown on your statements as this information will not be retained by Tax Credit Office.

FrazzledMumof4

Having been through this process myself, it is also to check that you have no other working income etc.., with mine it was to check my childcare payments and to make sure I was definitely single so all bills were going out in my name, it's standard procedure, you don't have to declare the maintenance you receive, they did ask me about payments going into my account and where they were from. They usually check with the childcare provider as well to confirm the amounts paid. They are very thorough (phoned my childminder 10pm at night). Keep copies of everything you send, if necessary add a letter confirming any unusual amounts in bank statement and always send by recorded delivery. I hand delivered mine direct to the compliance officer and made sure I got her contact number. Then I gave her a week and phoned her every other day to check the status of everything as the normal tax credits helpline won't be able to tell you anything, only your Compliance officer. Turned out I had an overpayment albeit a small one luckily, (crossed wires over maternity pay that she admitted to but I still had to pay it back as I hadn't checked). Good Luck