May have a real problem and I'm scared to death — Scope | Disability forum
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May have a real problem and I'm scared to death

jbautismaware11
jbautismaware11 Member Posts: 15 Connected
edited October 2021 in Benefits and financial support
I've just noticed a potential problem on my child tax credit paperwork. Since may 2015 I havnt declared carers allowance. I thought i did. And now I'm so scared. I've just got all my paper work out and figured i informed dla, housing benefit, council tax and income support of the carers claim... but on my renewal forms form child tax credit I can only see receiving income support and no carers allowance. I only get 45 pound income support a week and carers allowance on top. But I've just realised that carers allowance is actually classed as a taxable income.  My child tax credit is for 2 children under 16 and one who receives disability element due to higher rate care for a disability, so my weekly child tax amount is £203 pound. What will happen to me. Will my money stop, will I get prosecuted. I informed everyone else and have paper work to prove it. Just not child tax. I'm so scared I've cried all day, that's 5 years, please help me and don't be worried of informing me with the truth. As soon as it gets to Monday I'm going to ring them. I'm not a thief or fraud, I informed everyone else, but when two said they were informing my local tax office for the new change of carers, I automatically assumed tax credit was apart of this but obviously not. If had so many problems lately, especially with covid 19 and autism child locked in and problems with foods and meltdowns 

Comments

  • woodbine
    woodbine Member, Community Co-Production Group Posts: 7,721 Disability Gamechanger
    The bad news is that carers allowance does affect child tax credits and you will need to inform hmrc, the good news is please try not to worry too much, see what they say and what they suggest can be done going forward.
    Let us know how you get on.
    Be extra nice to new members.
  • anisty
    anisty Member Posts: 173 Pioneering
    I agree. Just call them, be honest and they will adjust your payments to reclaim overpayments. Try not to get in a state on the phone (you could write to them if you think you cant manage the call) and try not to over talk and provide lots of reasons and explanations.

    Remember the call will be recorded. Just come clean. State the situation and let them do the talking. Resist that urge to start rambling on if they go quiet (they might be just waiting for their computer screen to load)

    They wont prosecute, that costs them money and hassle. The worst they can do is take money back.

    If you do write, just explain that you didnt realise, and state that you are writing to them so that your child tax credit can be adjusted so that you are receiving the correct amount going forward.

    Do keep a copy of any letter you send. And if you phone, record the call or at least take notes and jot down any facts, figures or dates.


    You will feel so much better when this is cleared up, even if your payments go down.

    All the best
  • anisty
    anisty Member Posts: 173 Pioneering
    Ps what they will probably do is claw back the overpayment over a long period of time. I dont think they are likely to stop payments altogether when you have children relying on this money. 

    The worst that can happen (i think) is a hefty reduction that leaves you struggling a bit. I dont think you will get nothing. And it will go back up once cleared.


  • Sparklebrightisright
    Sparklebrightisright Member Posts: 21 Connected
    They will just take so much off each payment proberbly a small amount do not worry you will be fine stay strong for yourself and your family.

    Sparklebrightisright.
  • hells123
    hells123 Member Posts: 33 Listener
    I've just noticed a potential problem on my child tax credit paperwork. Since may 2015 I havnt declared carers allowance. I thought i did. And now I'm so scared. I've just got all my paper work out and figured i informed dla, housing benefit, council tax and income support of the carers claim... but on my renewal forms form child tax credit I can only see receiving income support and no carers allowance. I only get 45 pound income support a week and carers allowance on top. But I've just realised that carers allowance is actually classed as a taxable income.  My child tax credit is for 2 children under 16 and one who receives disability element due to higher rate care for a disability, so my weekly child tax amount is £203 pound. What will happen to me. Will my money stop, will I get prosecuted. I informed everyone else and have paper work to prove it. Just not child tax. I'm so scared I've cried all day, that's 5 years, please help me and don't be worried of informing me with the truth. As soon as it gets to Monday I'm going to ring them. I'm not a thief or fraud, I informed everyone else, but when two said they were informing my local tax office for the new change of carers, I automatically assumed tax credit was apart of this but obviously not. If had so many problems lately, especially with covid 19 and autism child locked in and problems with foods and meltdowns 


    you will have an overpayment for the years that you did not advise them, they will re calculate your tax awards from may 2015 I cant see it being much as the awards are calculated over a 12 month period and paid weekly. , and the difference may not be that different. I am unsure of the exact amount of carers allowance in 2015, but it is only £67.25 and it goes up slightly over the years, so at the most it would only have been around £55.00 per week at a guess.    So the difference would be between the amount they paid you without the carers allowance and the amount that pay you with the carers allowance, the difference is only at present £67.25.    You can agree an affordable amount each week with them to pay them back. don't worry its a genuine mistake


  • Adrian_Scope
    Adrian_Scope Posts: 8,576 Scope online community team
    edited June 2020
    Hello @jbautismaware11
    I'm sorry to read you've been having so many problems lately and have struggled during lockdown.

    Please try not to worry too much about this. From experience it's quite common for them to miss Carer's Allowance when doing TC renewals, even if you've declared it to them. 

    Can I ask if your household has any income from paid employment or other taxable income? If not, it's unlikely that your CA will effect Tax Credits. If it's the only taxable income you receive it'll be below the threshold. It still does need to be declared but shouldn't be a huge issue.

    If they do decide you have been overpaid as you have other taxable income then you'll be able to set up a repayment plan.

    Good luck when you speak with them and please let us know how you get on.
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