Child Care Element of Tax Credits used to pay for unregistered childcare to keep job

CrazyCarpet

Hi can anybody help??
February last year i had a disagreement with my childcare provider due to the fact she wasn't doing her job properly (substandard care/excessive sick days!) meaning i had to remove my children from the provider immediately.
I was searching for registered childcare that could look after twins whilst i'm working full time as i'm a single parent.
I was unsuccessful for many months and for this period paid various friends and family to care for them so i could keep my job. I have now found a registered childminder/playgroup for them but I have been selected by Tax Credits for a review, they are asking for receipts of childcare and agreement with provider which is now in place, but for 10 months whilst they were being cared for by PAID family members/friends i have no receipts or agreement of childcare from that time. I wasnt aware that it had to be necesserily registered childcare when it was an emergency and could have resulted in to me losing my employment.

Has anyone else been in this situation that could give me any advise on what to do??
I am very worried about my tax credits stopping altogether as they have asked for the information by the end of Christmas can they stop the childcare element of tax credits even though i have now arranged a registered childcare/playgroup now and can they stop the working tax element? because this could result in me having to leave my employment which is not what i want to do

princessdon

It's simple

You can't use TC to pay for none registered family members

Agree a payment plan to pay back what you owe over as long a term as possible as you owe the childcare element for that time period.

nannytone_2

it has always been the vase that childcare has to be registered. if you werent aware of this fact, it won't make a difference.
as the claimant the onus is on you to ensure that you are following the criteria set out for any particular benefit.

the fact that you renewed your claim since the kids were out of registered care doesnt help euther.

it is likely that you will be asked to repay this money that you were not entitled to.
it will probably be recovered from future pauments rather than as a lump sum

CrazyCarpet

princessdon wrote: »

It's simple

You can't use TC to pay for none registered family members

Agree a payment plan to pay back what you owe over as long a term as possible as you owe the childcare element for that time period.

Thank u, do you know if they will continue to pay for the childcare i have in place now?

princessdon

CrazyCarpet wrote: »

Thank u, do you know if they will continue to pay for the childcare i have in place now?

yes, but they may ask for spot checks.

The here and now isn't the problem is its the past.

They *may* decide you were fraudulent, they alternatively could come up with a really low repayment plan.

Your best bet is to be honest and take what comes.

It's likely they will take over 2 - 3 years, but I am no expert on this. Ice Queen is, however, so if she posts then she will know.

Icequeen99

If you can provide sufficient evidence that your new childcare is ok, then they should accept it and amend your award to remove the childcare for the period when it was not registered.

Obviously this will create an overpayment. As the same claim is still in payment, you will be subject to 25% recovery from your claim going forward to pay back the overpayment (unless your claim ends for any reason and then they will want the whole amount).

You may also be given a penalty for failure to report a change of circumstances. It is rare for TC to do this, although they are doing it more often to encourage people to be more careful with their claims.

Unlikely that it would go beyond a penalty and overpayment unless there is more to it and there has been multiple previous penalty issues.

IQ

dundeediva

Give the number on the letter a call and let them know the date of the last day of using your proper childminder. Tell them you made a mistake and you used family since then. You will be overpaid and you will have to pay it back BUT better to tell them sooner rather than later.

labyrinth84

You will have to pay it all back. But like already advised, it won't be in 1 large lump sum.

I got stung by Childcare too. I basically moved my daugher from one registered nursery when she was 1 year old, to another when we moved address til she was 5. I had informed them of change of provider, and given details...but 2 years ago got a letter saying they had done a spot-check with the ORIGINAL nursery, who of course informed them I hadn't been paying them for 4 years. Clearly, it was not processed when I told them of my change! Even with written confirmation from the second nursery of the contract I had with them they will not respond to appeals and I've been paying it back for 2 years! Got to pay back for nursery fees claimed, for nursery fees paid! It wasn't fraudulent, an error by their system that I am now having to pay for

So, even with proof- it will need repaying

Icequeen99

labyrinth84 wrote: »

You will have to pay it all back. But like already advised, it won't be in 1 large lump sum.

I got stung by Childcare too. I basically moved my daugher from one registered nursery when she was 1 year old, to another when we moved address til she was 5. I had informed them of change of provider, and given details...but 2 years ago got a letter saying they had done a spot-check with the ORIGINAL nursery, who of course informed them I hadn't been paying them for 4 years. Clearly, it was not processed when I told them of my change! Even with written confirmation from the second nursery of the contract I had with them they will not respond to appeals and I've been paying it back for 2 years! Got to pay back for nursery fees claimed, for nursery fees paid! It wasn't fraudulent, an error by their system that I am now having to pay for

So, even with proof- it will need repaying

But that is different to the OP. If you had entitlement to the childcare element then you should have appealed. They can't not respond to an appeal even if it takes a while. Appeals go to an independent tribunal outside of HMRC.

A change of provider is not something that MUST be reported for tax credits and it isn't something you can check whether it has been changed on the award notice either.

Providing that there was no gaps between the childcare and that the amounts were roughly the same then you need to continue your appeal. Even if the amount was different, there is still a potential appeal.

I would get some advice on this one.

IQ

labyrinth84

Icequeen99 wrote: »

But that is different to the OP. If you had entitlement to the childcare element then you should have appealed. They can't not respond to an appeal even if it takes a while. Appeals go to an independent tribunal outside of HMRC.

A change of provider is not something that MUST be reported for tax credits and it isn't something you can check whether it has been changed on the award notice either.

Providing that there was no gaps between the childcare and that the amounts were roughly the same then you need to continue your appeal. Even if the amount was different, there is still a potential appeal.

I would get some advice on this one.

IQ

Thank you so much for this advice!

I will keep on sending the information until I finally get at least an acknowledgement.

Thank you again

*LittleStar*

labyrinth84 wrote: »

Thank you so much for this advice!

I will keep on sending the information until I finally get at least an acknowledgement.

Thank you again

Independent Tribunals are great and would be very surprised if they don't rule in your favour as you paid for childcare. Good Luck and be great to know how you get on :-) :j