Child care costs and boarding school fees

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  • #31944
    swatts
    Participant

    Help and advice needed please!
    Customer (LP, working 16 hours) has a child who is a boarder in a local secondary school; the child is home every weekend but has special educational needs and apparently this school is the most suitable in the area. Cost is £2670 per term for boarding fees only – not tuition.
    To date, the childcare costs have been allowed by HMRC for tax credit purposes (although we haven’t seen the award letter – information via CIS). We have refused to allow these costs and, when we contacted HMRC, were told that they shouldn’t be allowing them either and the TC award will be looked at again (who knows when though?)
    As TC allow the CCC, should we follow them and change our decision if/when they change theirs (which will greatly reduce her TC award)? It seems odd that TC and HB/CTB can allow ‘boarding school fees’?
    An early reply would be appreciated – thanks!!

    #89347
    Anonymous
    Guest

    You’re not bound by HMRC’s decision. I would continue to do what you’re doing. Any overpaid tax credits will count as income unless the claimant has specifically asked HMRC to stop paying her – see CH/1450/2005 and CIS/1813/2007. She may well have to repay the overpaid CTC so she needs to get this sorted out as soon as possible.

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