Childcare Costs discussion

Splats wrote: »

Hi, I'd appreciate a view on the following:

Yesterday I phoned the tax credits helpline to submit a renewal for my wife and I. I was asked about salary sacrifice and I told them my wife does it for Childcare vouchers to the max allowed. The guy at the other end (after checking with someone at his end) then said that we had to reduce the amount we were claiming for the childcare costs pro-rata for the amount we received in the vouchers, which essentially knocked £56 per week off the costs. Presumably this may reduce the tax credit we will get.

Has anybody else come across this - it isn't mentioned in the Guidance Notes? Any thoughts to how it will impact on our tax credits?

Cheers

You can't claim both Tax Credits and Childcare Vouchers for the same amount of childcare fees.

So if your bill is £500 for example and you claim £250 of childcare vouchers then for tax credit purposes the cost of your childcare is £250, not the full £500.

puddin81 wrote: »

hi can anbody help please. me and my partner have a joint income of £38000 per annum and our childcare is going to cost £615 per month and is a set rate. we both work full time could any one tell me how much childcare cost we are entitled to recieve back
many thanks

We were in the same boat when I started back at work. Costs about the same too. While we didnt qualify for working tex credit we did for the childcare element. Our joint income at the time were £43k tho. Even so we got an extra £30 per week. So £120 per month towards, with a lower income you would prob get more but I dont know how much more. Your best bet is HMRC Do I qualify (googloe that) or entitled to .co.uk Input your details and that will give to a relatively accurate figure.

We switched to childcare vouchers are we both could claim them. in tax each on (on lower band tax) saves £70 per month so as we both claimed them that weas £140. But you have to take the amount you get from your childcare costs, (i.e your childcare costs per week when you tell the revenue drop by the weekly amount of your voucher, not the tax saving) so be aware if you claim them that your childcare element would most certainly stop.

Am sure you have looked at this but if you have the option, getting a relative to help out 2 days a week will save you a massive £200 per month! I was surprised when I saw that (tho it really wasnt an option for us)

any extra help you need PM me :j

clairelou44 wrote: »

Hi can anyone help me out with this as Ive looked online and it isnt very clear. My daughter goes to Nursery 3 full days a week and the nursery charge per day rather then per hour. When she is entitled to the free 15 hours is the maximum she can use only 2.5 hours per day, or could she have 1 whole free day per week? And does anyone have any experience in if it is only 2.5 hours per day how do the nursery deduct that if you pay per day rather then hourly?
Hope this makes sense

Same here only 2 days instead. From what I can tell, you can have the hours on the same day but there has to be a gap at lunch so I figure the bursery would bill you that hour. I suspect the easiest way for them to do it is minus it from what you pay. So the gov pay for 15 (tho I thought it was still 12) hours, so say thats at £10 per hour they pay for £150 of care, minus that from your weekly bill and you pay the remainder. I wont know myself till next year tho so do come back and tell

But overall, best bet is asking the nursery. Am sure they will know how to deal with it, you cant be the first with children on day rather then hour rate :cool: