tax credit fraud? please help

busybeeme

hi my partner has had a letter from the tax credits saying his childcare has been checked and the information he has given is not correct.

he has his daughter 4 days out of 7 and she is registered at his address and he gets the child benefit, doctor registered at his address ect.

on talking to him it turns out he has been giving the child care money to his ex to pay the childminder her idea he pays the full amount to her as that is what they did when they lived together and nothing has changed. she has been going to her work and getting child care vouchers to get some of her wages tax free for the last 2 years.

could someone tell me who is at fault? and what the outcome is likely to be please?

skateykatey

Presumably, he is claiming the childcare element of tax credits and then giving the money to his ex who is then, it would seem, not actually paying the child care provider or not paying the amount actually being claimed.

Is that correct??? If so, it is he that is responsible for any subsequent overpayment and penalty. The arrangement he has with his ex wife is moot as it is he that has signed the declaration when claiming. Ignorance is no defence in this scenario.

Best possible outcome is an overpayment that HE will be responsible for repaying (if you are in a joint claim with him you will also be responsible)

Worst possible outcome is court

busybeeme

he didn't know she was claiming the vouchers does that count? thank you for your help

busybeeme

she isn't the resident parent he is does that matter? the amount he claimed was the amount that was paid

skateykatey

busybeeme wrote: »

he didn't know she was claiming the vouchers does that count? thank you for your help

In short, no it doesn't. The responsibility for ensuring that the child care amount was the amount incurred and paid was his, and yours too if you are in a joint claim.

skateykatey

busybeeme wrote: »

she isn't the resident parent he is does that matter? the amount he claimed was the amount that was paid

The non resident parent issue wont matter. I'm confused though as you say that the amount claimed was the amount paid; if this was the case, then how is this tax credits fraud??

busybeeme

he told the tax credits the child care was say £50 a week I don't know amounts as we don't live together they then gave him the amount he was entitled to. he then gave her £50 as he used to when they lived together to cover the child care. she then claimed child care vouchers you cant claim childcare vouchers and tax credits that is where I think the fraud is x

skateykatey

you can claim childcare vouchers and tax credits; what you can't do is claim for the amount that childcare vouchers cover.

EG; cc costs are 100 a month, you claim child care tax credits of 75 a month because the remaining 25 is covered by the vouchers.

It does sound like she has been a bit naughty; who know's how long it's been going on for but its caught up with her (or rather him) now.

This will be a valuable, and expensive, lesson for him.

bestpud

The claim is his alone so he applied for childcare to cover his working hours.

Way I see it, he's fraudulently claimed money he wasn't entitled to.

busybeeme

im furious with him

skateykatey

busybeeme wrote: »

im furious with him

To be fair to him, I'm assuming he did it out of ignorance and he figured that she wouldnt stitch him up. I'm prepared to reserve judgement on him comitting premeditated fraud until I'm proven otherwise.

But yeah, he's been a bit of an idiot I'm afraid.