Child Tax Credit Overpayment

LittleMissMolly_2

No, sorry I wasn't clear ... They don't just get CTC for the childcare, they get an assistance with living expenses for them too, so the amount of the Award is supposed to be more than the straight childcare costs. The childcare element on the £160 (in total) Award notice looks correct, taking into account the averaging out.

Initially, when my daughter rang them because payments had stopped, she was told that they had stopped because she and her partner earned too much to qualify. Further enquiry elicited the information that they had both incomes set too high - by a total of £14000. She had only given them the correct figures in September, when she started her new job, yet it seemed that someone had changed them in December which resulted in the stoppage. At this point she insisted on checking every item of data and the childcare provider issue was discovered.

Then, after they had re-assessed, they hit her with the overpayment and clawback - blaming the overpayment on the childcare provider error. To me though, it seems highly unlikely that significant data was randomly changed on different occasions,and we know that the salary changes must have been done in December, or their payments would have stopped sooner. If the childcare information was added at the same time that the income figures were changed, then how can there be an overpayment?

Until we get the data and can see the dates/times that the data was changed (and can match them with phone calls made and Awards received), I don't think we will really understand what's gone on, but we can't wait the 42 days+ before deciding to go ahead with a dispute/appeal or we risk being out of time to do so.

If there's been an overpayment, then no-one fundamentally minds paying it back (though a less draconian and more affordable way would have been appreciated), but as I say, I'm not even entirely sure that there has been an overpayment. The whole system is so impenetrable it's impossible to tell

Icequeen99

I understand how tax credits are calculated.

What I am saying is when the change was reported and the childcare change by mistake, an award notice was generated. One of the pieces of info on that notice was childcare costs of £160.

At that time - was the £160 correct (as an average). If it was, then there shouldn't be any overpayment. But if that figure was wrong, then the question is whether your daughter queried it.

Also, i understand why you have appealed and disputed, that is a good step I think.

However, you should be able to work out if what they are saying is correct - if the entitlement calculation as shown on the award notice is correct and the amount stated as received to date is correct then the overpayment shown will be correct.

IQ

LittleMissMolly_2

It's been a long and busy day at work and my brain is mangled, so I don't know if I'm being exceptionally dim, or exceptionally incoherent lol, but thank you for your patience The total October Award was for £160, but the childcare amount was correct and the childcare element of the total award was around the £50pw mark, which is correct for 70% of the averaged out costs. The rest of the £160 was child and family elements.

Then there were no other Award notices at all until two arrived this week - one showing the higher salaries and childcare costs (and zero entitlement) and one showing the correct salaries and childcare costs, with a new Award figure (£124pw) and the overpayment figure.

This is why it's making no sense to me - the Award notices and amounts received tally, there is nothing on there to indicate that too much was being paid for childcare - indeed, the childcare weekly figure on the newest award is the same as is shown on the October award (based on her September phone call).

Darksparkle

Jojocat wrote: »

Hi,
Tried to start a new thread but can't work out how to.
I get CTC for my 17 year old son, he'll be 18 in April and leaves school June 2016 (Scotland) to start uni in Oct 2016. Is it correct that I'll get CTC and child benefit until 31/08/16?
I fill out a CTC form every year and get it around June time. When I fill it out this year, it'll be for income 2015/16(April 2016) but if I do get payments until 31/08/16 does that mean I need to fill out another form confirming my income from April 2016 until 31/08/16?
Any advice would be appreciated.

There is a button at the top of the forum that says "new thread".

Yes you'll be entitled to CTC until 31st August if going on to uni.

The renewal form this year will ask for 2015/16 income.

Yes you will need to complete the forms again next year, however they still ask for the full 2016/17 tax year income, not the part year.

realoatsy

Hi All,

if anyone can please assist in any way I will be eternally grateful as I haven't slept for a week since I've got this letter and have been feeling almost suicidal.

I received a letter from concentrix on behalf of HMRC asking for details of my chilcare provider to make sure that they (HMRC)don't overpay my tax credits for the next tax year.

I have 2 kids 8 and 6 and pay a lady £140 a week to look after them, they same lady has been doing it since they were born and does a brilliant job. When I phoned and asked her for her childminder registered number she told me that she hasn't been registered for the last 3 years and that she told me this at the time.

If she did then I genuinely can't remember it. She is of retirement age and survives on a state pension along side the amount I pay her for childminding half of which she ends up spending on my kids in the form of food, clothes birthday and xmas presents she even brings them presents when she heads away on breaks.

I'm now worried sick that I will have to pay back 3 years of tax credits to HMRC - my wife and I do not earn huge amounts of money and the tax credit money helped us provide a comfortable if non extravagent life for our kids.

Can anyone adivise me, we don't want to give up our childminder who we are all very happy with especially the kids, on the other hand if we are asked to pay back all these tax credits it will cripple us financially, all over an inadvertant oversight.

I haven't yet sent the letter back, I was thinking of sending it in with the registration number that I had and hope that it may still go through on their system, then make the amendment on this years tax credit return.

If anyone can provide and help or words of comfort to help me sleep please do.

Darksparkle

realoatsy wrote: »

I was thinking of sending it in with the registration number that I had and hope that it may still go through on their system, then make the amendment on this years tax credit return.

If anyone can provide and help or words of comfort to help me sleep please do.

I'm sorry but you can't lie to get yourself out of this by giving a registration number that you know is no longer valid. Then you could be seen to be deliberately and fraudulently claiming which could lead to more serious action than paying back an overpayment.

You will need to admit that your childminder stopped being registered from X date and allow them to decide when they overpayment will go back to.

You can continue to use this childminder if you wish but cannot seek the financial support through tax credits. Or you could find a registered provider and continue to claim.

[Deleted User]

I went to see a childminder years ago who point blank told me she wouldn't register for child tax credits. I couldn't use her as would have been reliant on this money to pay her. I walked away, and unfortunately, had to turn down job interviews I had lined up as I had no child care (I'd tried everything, this lady was the only one with a space). It killed me, but I just couldn't pay her. I suspect as well that given her aggressive attitude about it, my son wouldn't have been happy there.

I'd be wondering why someone wouldn't register?

Darksparkle

deannatrois wrote: »

I went to see a childminder years ago who point blank told me she wouldn't register for child tax credits. I couldn't use her as would have been reliant on this money to pay her. I walked away, and unfortunately, had to turn down job interviews I had lined up as I had no child care (I'd tried everything, this lady was the only one with a space). It killed me, but I just couldn't pay her. I suspect as well that given her aggressive attitude about it, my son wouldn't have been happy there.

I'd be wondering why someone wouldn't register?

The childminder doesn't register for tax credits, they register with an approving body eg ofsted.