childcare overpayment - help needed

moniruk

Hi All,

I work full time and my wife started part time work (16hrs/week) back in october.

We claimed childcare for our two young children for the period my wife worked during the week which came to £250 for both children per week. This was paid in cash to our childcare provider from the wages my wife recieved in cash and with savings we had at home therefore the childcare payments made to us were not always used as payment.

Hm revenue have looked into our claim for childcare after we provided information such as payslips, childcare contracts, bank statements etc.

They have now refused childcare on the grounds that they are unable to validate our childcare because payments made to us were not withdrawn from our bank account in cash to pay for the childcare even though we provided receipts and childcare costs in writing to them.

They have now stopped payments and told to we need to pay it all back. My wife has had to stop working as a result and we are also not getting any child tax credit.
I am now appealing this decision.

What are my rights in this as they have not used facts to base their decision, rather just assumed that because I did not use the money I received to pay for childcare that I did not have childcare at all.

Any help will be much appreciated.

Thanks

clearingout

can you get confirmation from your wife's employer that she is paid cash?

the problem I think you will face is that few employers (if any?) pay cash in hand if the job is all above board (tax and NI contributions being paid? pension?). If your wife is being paid cash in hand I'm not sure you'll be able to appeal as there will be no evidence that she has actually worked. Can you confirm the nature of your wife's job?

moniruk

The employment contract submitted to hm revenue states that she was paid in cash. We also submitted the payslips detailing her actual pay provided by the employer.

She worked as a childminder in a childcare centre.

DannyboyMidlands

Paying for childcare in cash out of wages paid to you in cash by said childcare centre?

Yeah right. Sounds like a scam to me.

princessdon

moniruk wrote: »

The employment contract submitted to hm revenue states that she was paid in cash. We also submitted the payslips detailing her actual pay provided by the employer.

She worked as a childminder in a childcare centre.

Did the same centre look after your children?

moniruk

initially yes but then had to move the children to a different childcare centre as they did not have enough adults to look after the children.

This was only a temporary arrangement so my wife could gain some work experience. This was the first time we have claimed childcare so did not know how much we could expect to receive.

princessdon

Ok, you have a contract with the child carer?

They are OFSTED registered?

you have receipts and their confirmation of payment,

If the above is yes, then method of payment is irrelevant. I pay cash for my childcare sometimes, I assume other parents do.

nottslass_2

Have HMRC contacted the childcare provider direct ?

In the past HMRC have randomly contacted my childcare provider to verify my claim is legit.

moniruk

Thats all correct.

I have provided contracts with childcarers, they are ofsted registered.

I have given receipts of payments made to them and confirmation of childcare being charged for my children.

The only thing they could not confirm was that I did not withdraw the childcare payments from my account weekly to pay for the childcare. If they had told me I needed to pay for childcare from actual payments they were giving me, then I would have done that.

moniruk

Yes they have contacted the childcare provider and verified its all legit. When I rang them up for an explanation, all they told me was that my bank statements did not show withdrawal of cash amounting to the childcare costs I was claiming.

cutestkids

clearingout wrote: »

can you get confirmation from your wife's employer that she is paid cash?

the problem I think you will face is that few employers (if any?) pay cash in hand if the job is all above board (tax and NI contributions being paid? pension?). If your wife is being paid cash in hand I'm not sure you'll be able to appeal as there will be no evidence that she has actually worked. Can you confirm the nature of your wife's job?

That's a bit of a sweeping statement is it not ?
Plenty of small business owners pay by cash and keep everything above board with regards tax and NI.
The reason for paying in cash is generally that the cost of setting up and maintaining an electronic payroll is just too much for small business who are working to tight margins.

Small independent shops, small hotels, pubs, nurseries and childminders who only have a few members of staff etc.

Just because you are paid in cash does not mean that everything is not above board