Friday, 13 June 2014

Tax Credits and Childcare

You could get extra tax credits to help pay for some of your childcare costs while you’re working. 





You could get:
  • up to £122.50 a week - for 1 child
  • up to £210 a week - for 2 children or more
You can’t get 100% of your childcare costs and how much you get depends on things like:
  • your income
  • how often you pay for childcare

Childcare vouchers

If you get childcare vouchers from your employer the amount of tax credits you get can go down.
Use the Gov.uk childcare voucher calculator to see how childcare vouchers from your employer affect your tax credits.


Eligibility

Usually, you’ll qualify for tax credits to help with childcare if:
  • you qualify for Working Tax Credit
  • your child is under 16 - or under 17 if they’re disabled
  • you’re responsible for the child
  • the childcare you pay for is registered or approved
  • you work the right number of hours for childcare tax credits

Registered or approved care

The childcare must be registered or approved (the carer can confirm this). Childcare can include care provided at home, in school or another place by a childminder, playscheme, nursery or club etc.


Schools

The care must be outside of school hours and on the school’s premises - unless your child is under 5 and in England.

Relatives or partners

You can’t claim for childcare provided by your partner.
You can claim for childcare provided by a relative if they’re registered and care for your child outside your child’s home.


Hours you work

You must work at least 16 hours a week. You might still qualify if you’re on leave from work, eg maternity leave or sick leave.
Couples usually have to work at least 16 hours a week each. Only 1 of you has to work these hours if the other is:
  • entitled to carer’s allowance
  • in hospital or prison
  • getting certain benefits or credits for disability or illness - eg Disability Living Allowance, Attendance Allowance, Personal Independence Payment or a disability premium for Housing Benefit
Use the Gov.uk tax credit calculator to check if you qualify.


How to claim

Contact the Government Tax Credit Helpline for a claim form if you’re new to tax credits. It takes up to 2 weeks to arrive.
Call the Tax Credit Helpline to update your claim if you’re already claiming tax credits - you don’t need a claim form.

What you need to know

You can claim at any time of the year and up to 7 days before you start using childcare (if you’re already getting tax credits).
You can’t claim online or download a claim form.
Keep records about the carer’s registration and the money you pay them (eg receipts or invoices) to help support your claim.

Report any changes to your childcare because they can affect how much money you get. For example, if you start paying more for your childcare.




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