Childcare Costs

MSC1885

Hi Everyone, first time poster.

My cousin has been contacted about overpayments for childcare costs (child is now in school for a few years!)

Her HMRC Tax Credits Annual review for the past few years state 'you had no qualifying childcare costs'.

Surely, that means she's not been getting them? However, looking at her credits etc, I really cannot work out if she's still been getting them. As they are lump sum figures, I'm not sure if a chilcare element is included.

Any help, really appreciated.

Thanks in Advance

C

peteuk

It’s been a while since i looked at a TC award, but if your cousin did not advise HMRC that she no longer had a requirement for child care they will automatically assume it continues.  Somewhere in the award paperwork it will note the childcare provider and cost, however it’s worth noting that there is no time limit for when they can claim overpayment.  

Best thing to do is cintact them and get more info, eg when it occurred and work out from there, 

MSC1885

Hi Pete, 

Thanks for the reply. On the sheet (from what I remember) is names her two children then in bold says Childcare Costs and straight underneath 'You have no qualifying childcare costs'. She's adamant she told them and but through naivety, or complete head in the clouds, has just seen it as a normal payment for WTC - the numbers seemed very high (when I looked earlier) which is why I checked but the annual review definitely didn't show her childcare provider.

Saying no qualifying childcare costs to me reads as they've removed her childcare provider but the payments have just continued. Admittedly, I know nothing of how it works in tax credit terminology, so just reading the statement over and over.

I'll have another look on the weekend.

Cheers

peteuk

Although I am going back a few years now, and I am told that the computer system is a little bit brighter than what it was, we moved and so thought we had stopped a child care provider and then when we found another we provided them with the new name.  The computer hadn’t stopped the first provider and so when we said we have a new provider the system unfroze the first.  So for a period we had two providers one of which was a 4 hour round trip. 

As mentioned there will be a number to call on the overpayment they will be able to pin point the exact time of the overpayment and as to why its is owed.  It then can be challenged, but be warned HMRC do expect you to be able to understand their paperwork and the owners is equally on the claimant to identify overpayments, just as it is to advice of any changes. 

MSC1885

Cheers Pete