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Old Jan 14th, 2017, 04:46 AM   1
Mum (Mom)
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Join Date: Sep 2012
Location: Manchester, UK
Posts: 4,136

Failed to report tax credits changes within 30 days

Me and my husband both work full time and DS goes to nursery full time. He turned 3 in April last year and in September started receiving funding for 15 free hours during school term time.

I was filling some forms out at nursery yesterday for the new term and she said to me not to forget to tell tax credits. I didn't realise that I had to inform them of this, I thought the average childcare costs would be calculated at the end of the tax year.

I've since found out that if childcare drops or rises by 10 a week or more you need to report this within 30 days or you receive a penalty of 300.

I've contacted tax credits and reported that my average childcare costs have gone down by 30 a week from September and now I am panicking like mad that I am going to be fined. I couldn't get through on the phone so I have changed it online.

Has anyone else ever been in a similar situation? I realise that my payments are going to go down but now I'm worried they will stop all together as the tax credits help towards childcare costs.

Last year we ended up having an over payment because OH's wages had gone up by 1,000 over the year and Tax credits took the full 1,000 back off us and we really struggled. I really can't afford for this to happen again

I always thought that you only report income changes if they go up or down by 2,500 or more.. it even states that on their website.

I can't wait for the day that I don't need to claim tax credits. Had nothing but trouble with them this past couple of years!

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Old Jan 17th, 2017, 14:01 PM   2
Mum (Mom)
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Join Date: Jan 2010
Location: UK
Posts: 11,688
Hey, you have 2,500 leeway either way for declaring income, just means they ignore it if your income increases by this much. Do you mean you were overpaid 1000 or that your DH earned 1000 more? If the latter it shouldn't affect tax credits till next year.

Childcare as you say is 10+ per week to inform, it's very important to declare it with funding because you're receiving the same tax credits but paying much less, that said hopefully the 300 is just a threat and as you've changed it within the same year they might just reduce what they pay you for the rest of the year, if they run out of time they may do next year?

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