Are Tax Credits supposed to check on us as care providers?

**nipper** · 06-12-2012, 12:44 PM

Just a question that I have often wondered about. I know that we give prospective parents our EY numbers for if they claim tax credits BUT are HMRC supposed to check up that we are are actually providing childcare for a specific family? What happens if a family leaves to say, go and use a local nursery or even another childminder who is cheaper or more expensive. I recently lost a school-age mindee to the b/a school club at the local nursery and I know mum was claiming tax credits.

**Pixie dust** · 06-12-2012, 12:54 PM

They do check on random families as I had them check one of my families who happened to be claiming more than what I was actually charging!! Their excuse was they needed the extra to help pay bills

I believe there are a lot of families out there that get away with this there should be a better system in place.

**nipper** · 06-12-2012, 12:58 PM

This is what I have thought. Do you think we can contact HMRC and volunteer details of the families we work with?

**bunyip** · 06-12-2012, 01:22 PM

Originally Posted by nipper

This is what I have thought. Do you think we can contact HMRC and volunteer details of the families we work with?

Anyone may report suspected fraud. HMRC will take details and decide whether or not to investigate further. They will not report their findings back to you.

**nipper** · 06-12-2012, 01:32 PM

It's not really suspected fraud, more "I would just like to volunteer the details of families I work with", and they can cross-reference their list against mine!

**k1rstie** · 06-12-2012, 01:42 PM

You would think that with a computerised age, they would be able to cross check. I have my full name and address on my Ofsted Inspection, now a parent does not even need to come to see me to get a copy of my number and details of my name and address. It is now so easy for the 'whoopsie, I didn't realise' people to make a claim.

When I buy my car tax online, the system knows that I have insurance and mot, so surely the technology is there.

I once read on a forum a few years ago (not sure if this one), about a family where the 2 kids went to CM fulltime for 2 weeks then disappeared. 2 years later the cm hears from the benefits people, asking just to confirm that she has recently put her rate up. The parent had been claiming for 2 kids, full time, for 2 years, and had phoned to say her rate had gone up. It was in excess of £20,000 if I remember correctly.

My firend was asked by a dad at school, (who she had known the family for years), if she would state that his child had been with her for the past 2 years, and that he would see her alright! Luckily she refused

**nipper** · 06-12-2012, 01:45 PM

I feel a call coming on...

**Tazmin68** · 06-12-2012, 02:35 PM

Last year I have a short term contract for just the 6 week holidays for 3 children. Anyway on first dat two arrived mom made excuse that she had not been to the bak and would pay me at the end of the day. I stupidly said OK. We went to West Midlands Safari Park for the day. At the end of the day another excuse and I sad that she needed to pay me the following day or I would not have them back. Guess never came back finally got a text 4 days later that she had found another minder who was cheaper and she never settled the bill and came back. Any way I remembered that the younges had been to a private nursery that I know so I very cheekly called then never divulged the name of the child other than he was under 1 year and was a prem baby. The nursery gave me the name of the child which was the same and the one I had and also that they were outstanding over £1200 in childcare fees when the family disappeared we both decided to call tax credits who confirmed that they had me down as providing childcare for all three children and both myself and the nursery had to provide evidence of signed contracts and Tax Credits have taken this family to could to get the payments back and if they do they tax credits will pay me the outstanding fees and the nursery.

Debbie

**mushpea** · 06-12-2012, 02:43 PM

I have had them ring me up before to confirm the family is with me and also I have had a nother parent openly tell me she put down more money to claim than she should have as other wise they wouldnt pay her full costs. I was once told that the hmrc can check it agains our self assesment tax returns and querry payments made as if parent claims more than it could like we arent putting down enough earnings, dont know how true this is.
I wish they would just pay us direct , woudl be far easier to get our money and a lot less fraudlant claims by parents.

**nipper** · 06-12-2012, 02:47 PM

That's frightening!

**nipper** · 06-12-2012, 02:56 PM

I just called them and was told the same. Their compliance depatment assess the parents claims and their salaries and only if the two don't tally up we get a phonecall. And we do have to give them evidence of the hours a child has attended...no visit from them though.

**bunyip** · 07-12-2012, 09:02 AM

Apart from the odd random check, they're only going to spend time if there's some evidence of fraud. Reporting our regular transactions with clients won't interet HMRC any more than if Tesco called them to say we CMs are buying nappies, and would they like to check we're declaring our expenses properly?

I used to wonder if direct payment of TCs to CMs would be a better way. But I think it would carry added complications, and be more expensive to administer, without ever reducing the posibility of fraudulent claims. From the CM's point of view, it would mean more forms to fill in, and possibly HMRC suddenly and unexpectedly wanting money back.