Childcare (tax credits)

[candy cat]

I need advice...... I have a lovely mum who claims for childcare through tax credits ......works 30 hours, but uses me 16 hours.....family do the rest of childcare. In conversation she told me she claims for the whole 30 hours..... At the time I was busy and didn't click what she meant.... then it clicked!! Basically, I am concerned that I will get a call from tax credits asking about hours. I need advice on whether I say anything as would never intentionally report anybody, but it is fraud as she shouldn't claim for remaining 14 hours as family have lo..... Help what would you do??

[mrsb79]

Either way she will be found out. I would suggest talking to the parent stating that if tax credits call that you can only tell the truth. They may never call you however they do check on claims. I think if the parent is cheeky enough to over claim she may be as cheeky to ask you to lie. I have had parents ask me to say they did more hours than they actually did they only did 10hrs a week yet were claiming for 37 I told them that under no circumstances would I assist them in a fraudulent claim and that it could affect my tax bill. Be honest and be firm just tell her that she needs to contact them and change the hours on her claim. Good luck x

[Koala]

I would leave well alone. If tax credits contacted me I would tell the truth and also inform parents that I have been contacted and what I have told them. Parents are under no illusion that they can claim for childcare costs they don't pay so if they lie they have to pay the consequences. However the fact that she has told you she claims for 30 hours is probably something you didn't want to know and raises the question - Why has she told you this? I would prepare myself for any further discussion about tax credits and her raising the subject with an appropriate reply - something along the lines of she may be a benefit thief but your not - or words to that effect , so that she is clear in no uncertain terms that you will not be implicated in any way.

It doesn't matter how lovely and nice she is - she is wrong!!

[bunyip]

Since you asked what I would do, if she were my client, I would report her to HMRC Fraud unit and give immediate notice. I have the following terms in my policies, and all parents sign up to them:

• If I suspect a parent is conducting a fraudulent claim or failing to submit accurate and up to date information in respect of any claims, I have a responsibility to report the matter to the appropriate authorities and I will do so.
• If a parent is found to be conducting any fraudulent activity or dishonesty, it will be treated as a gross breach of trust which may represent a breakdown in our business relationship. In such cases, I reserve the right to terminate the contract with immediate effect.

I make no apology for refusing to work with a parent who conducts themselves dishonestly, especially as by telling me they're either shamelessly blatant about it or trying to garner my support to collude in the fraud.

[mrsb79]

Bunyip I have report twice in the last month and a half it's such a palaver one of the lady's I spoke to was quite rude as in I was wasting time. However I'm glad I reported them as my conscience is clear x

[candy cat]

Thanks for your replies.....I can't give notice as work is slow round here ....... So I have just had to change contracts with her and enclosed a detailed letter of changes and made a point of saying that my paperwork has to be right for my tax purposes and also if tax credits check up on her hours etc


I will of course never be part of fraud and will just tell them the truth.....So frustrating that they don't pay childcare direct!!

[QualityCare]

One of my mums who claims childcare tax credits has to send them the receipts l give her every 6mths, she has just had a letter from them asking for a 'letter from childcare provider confirming payments since April 2013 to April 2014 along with any changes in rates and dates these occurred'. Luckily she is honest and only claims for what she is entitled to but it makes me wonder how your parent gets away with not sending the receipts, l know mine sends them as l keep them in the book for her so she doesn't lose them until she gets the letter asking for them, l wonder if your mum will get the same letter (perhaps she'll write it herself if she does).

[Jayse74]

Had a mum do this with us and they got found out which was the only time it came to our attention! She pulled the mindee and now two parents do informal childcare for the days we used to mind. We had to provide her a copy of every single invoice on top of this. Goes to show what people can be like! She had somehow lost them all...

I suspect the parent had told people it was our fault? how can this be our fault if they decide to play the system? it is unfair and our reputation has been tarnished by it.