Childcare Costs discussion

edited 15 June 2010 at 2:33PM in Marriage, Relationships & Families
190 replies 81.1K views
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  • 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? :confused: 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.
  • karimk8 wrote: »
    Hi,

    I am a 24 year old father of one. My daughter starts full-time education in September whilst I start my new career as trainee secondary education teacher.

    I am no longer with the mother of my child who claims income support and child benefits for our daughter.

    I was wondering if I was entitled to claim working child tax credits or benefits myself in any other way?

    I earn less than £18k before tax and pay for my daughter to take part in summer schools and extra curricular activities. Any help with this matter would be much appreciated.

    Thank you

    A child cannot be on two tax credit claims and I'd imagine your child's mother claims the tax credits for your child so you wouldn't be able too do so as well.
  • Fliss_MFliss_M Forumite
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    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
    Back to my comping ways :beer:
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  • clairelou44clairelou44 Forumite
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    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
    Everything Happens for a Reason....
  • Fliss_MFliss_M Forumite
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    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 :D

    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:
    Back to my comping ways :beer:
    3 beautiful daughters, a hairy bear 🐻 and a big blue Barry :love:

    Praying for that Lotto win! :rotfl:
  • clairelou44clairelou44 Forumite
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    Fliss_M wrote: »
    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 :D

    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:

    Thanks Fliss, I wont know until next year either, my second baby is due in December so Im just doing some forward financial planning. I think your right best to ask the Nursery but in the meantime if anyone else has been through the same thing please let me know :D
    Everything Happens for a Reason....
  • Just wondered if someone can explain/ clarify. My daughter shall be 3 in dec so will be entitled to the 15 hrs free as of Jan 11. My nursery are eligable and she is in full time. I also get child and working tax credits not much but every little helps. Am just trying to find out if when she becomes eligible does my entitlement rate for the credits also reduce, as am trying to see if i may have to pull her out of full time due to not being able to afford full time rates.

    Thanks
  • Fliss_MFliss_M Forumite
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    your rate of tax credits for childcare is worked out from your weekly childcare costs. So if your paying 150 per week, and the 15 hours (tho check that I thought it was still 12) comes to 50 per week, your childcare costs according to the tax credit system are 100. So yes I would imagine your credits will decrease, tho thats what am expecting and I dont get working tax credits, so that and being a single parent may mean it works differently. I know the help line is usless in helping you plan for what you can get but try http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx or https://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx?AspxAutoDetectCookieSupport=1 that should give you an idea :)
    Back to my comping ways :beer:
    3 beautiful daughters, a hairy bear 🐻 and a big blue Barry :love:

    Praying for that Lotto win! :rotfl:
  • can u claim childcare cost if it's a grand parent that looks after your child?
  • Fliss_MFliss_M Forumite
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    no. You can only claim childcare costs when they are supplied by a registered child minder or nursery. Even if the grand parent registered, they would have to look after more then just your child. Tho I am surprised grand parents would charge, certainly the type of amounts that would mean you got credits (about £130+ per week)
    Back to my comping ways :beer:
    3 beautiful daughters, a hairy bear 🐻 and a big blue Barry :love:

    Praying for that Lotto win! :rotfl:
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