who is actually paying child care costs overpayment

client has overpayment of tax credits
they allege he himself is not actually paying the costs
the costs are being charged and have been paid
but the grandma of the child helps him out significantly each month and probably gives the client most of the money for him to pay the nursery.
however it is him who is liable and some arrears In his name.
is there any merit in appealing?
would it help if the gran did a letter saying she has loaned him the money and he owes her x amount to make it more of a loan?
thanks

if the childcare people invoice him, and he hands over the money, then it’s his contract with the childcare provider, not gran’s.  the fact that gran lends him the money to pay (presumably whilst his tax credits get sorted) is surely purely fortuitious.  still his liability. and his children.  he would be liable for the arrears as well of course.

why do tax credits not get this? (no doubt because they don’t get anything, but that’s a whole other issue….)

I think Claire is right - i can’t see how HMRC can say that he isn’t paying the costs. The only way that would be the case is if the Grandmother was paying the childcare provider directly for her part.

Definitely appeal this.

Victoria