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Martin Lewis GMTV

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Hi, I am new to this site so forgive me if I have posted this in the wrong place!!!

I watched Martin Lewis this morning on GMTV and I could have sworn he said that if you and you husband were both working more than 16 hours a week, and earning less than £40,000, then we were entitled to help with child care costs. I rang the Tax Credit office and asked them to review my case again, as we get no help with these costs, (it costs us £1482 a year) the man on the phone said he wishes people wouldn't take any notice of whats on tv as it just isn't true. He informed me a year, that once you earn over £15,000 then help with child care costs go to zero, my husband and I earn £23.000 a year between us. Could someone put me straight on this as I am positive thats what Martin Lewis said this morning as it's obvious he certainly knows his stuff!!!
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  • Browntoa
    Browntoa Posts: 49,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    this article ??

    http://www.gm.tv/index.cfm?articleid=30165

    Money Saving Expert Martin Lewis says there's £1,000s of free cash and easy help available when it comes to childcare

    Financially, it's perhaps the worse investment you'll ever make. Kids cost a fortune, and childcare costs, especially over the summer holiday, are huge. Yet our Money Saving Expert Martin Lewis says whether you've little ones or boisterous teens, there's £1,000s of free cash and easy help available.
    Many parents and guardians are in a conundrum once the school holidays hit; they either pay for childcare, take time off work to look after children or keep their fingers and toes crossed that a friend or family member will be able to help.


    Either way it's a gamble or risk to the finances, yet by following these quick steps, you'll be guaranteed to knock £1,000s off your childcare costs.
    Step 1: Grab child tax credits
    Lots of working parents assume they earn too much to qualify for child tax credits yet if you, or both you and a partner, work more than 16 hours a week, and earn less than £40,000 per year, you'll stand a very good chance of being eligible.
    Average payments are £65 each week, yet you can get as much as £10,000 per year depending on your annual income and childcare costs. But hurry, to get the cash asap, the deadline to apply is 31 July.
    For full details including how to apply, read Martin's full Childcare Costs guide.
    Step 2: Are you eligible for childcare vouchers?
    Childcare vouchers are a little known government scheme, offered via employers, which can save some parents over £1,000 a year as it enables you to pay for childcare out of your PRE-TAX income.
    For every £1,000 earned, after tax & NI most people only take home around £700. Yet exchange this for the same amount of childcare vouchers and you're £300 better off per £1,000.
    For more info, including a calculator to work out how much you'll save, read Martin's full Childcare Vouchers guide.
    Step 3: Free or discounted school based classes and activities
    This summer, 12,000 schools are offering a range of activities for children, from sports coaching to dance and music sessions. And as places aren't limited to just children who go to its school, if your school doesn't offer these, check others.
    It's a safe and cheap way to resolve holiday needs and, if you need to pay for it, in some instances this can be part of your Childcare Tax Credit application or via Childcare Vouchers.
    To find out more about your local classes, check with your school or call the Families Information Service on 0800 234 6346.
    For more information and tips on the options available, read Martin's full Childcare Costs guide

    watch the clip again online

    http://www.gm.tv/index.cfm?articleid=24657
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  • M_A_C
    M_A_C Posts: 2 Newbie
    Wow, that was quick, thanks for that!!! He did actually say what I thought he said, why have thay said I am not entitled to it??? I will be back on the phone tomorrow!!!

    Thanks for the fast reply
  • Browntoa
    Browntoa Posts: 49,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    no problem , might be worth a read through those articles, I've highlighted the links in blue
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  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    Well the £15000 a year rule is bunkum. We have a declared joint income of £21000 and get £650 towards child care costs.
  • JessicaF_2
    JessicaF_2 Posts: 121 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    There are two reasons for what the helpline told you. (1) they have given you the wrong advice or (2) your circumstances and income mean you are not entitled.

    It is not possible with tax credits to generalise about who may be entitled. There are so many factors that determine how much you receive that it is impossible to generalise to this extent.

    It depends on whether you work, how many hours, whether there are any disabilities, how much the childcare is, how many children there are, whether the children have disabilities, their age etc....you can see that there are so many variables.

    If you have low childcare costs, only one child and just basic WTC elements then it is possible you may not qualify.

    However, just because you do not actually receive any childcare during the calculation, does not mean that it is not relevant. Having childcare costs in a tax credit calculation can mean that you receive more Child Tax Credit or family element than you would have done at your income without the childcare.

    There are online calculators such as entitledto.co.uk that may help, or indeed pop along to a local CAB who should be able to check for you.

    The article has inaccuracies and it bothers me that people give out mis-information to the public like this without verifying it. The deadline for applying is not 31st July - there is no deadline for applying.

    31st July is significant for tax credits if you have an ongoing claim which needs renewing - you can apply at any time and add childcare at any time.

    The section on childcare vouchers is also misleading - there are dangers for those on tax credits. Some people will be worse off overall if you take childcare vouchers from your employer because you cannot claim tax credits for those amounts.

    Jess
  • flea72
    flea72 Posts: 5,392 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Conor wrote: »
    Well the £15000 a year rule is bunkum. We have a declared joint income of £21000 and get £650 towards child care costs.

    how do you know what help you get, as the award notices dont give you a breakdown

    Flea
  • stefejb
    stefejb Posts: 1,725 Forumite
    Another thing to bear in mind is that your childcare must be registered with ofsted and you need to give the tax credit people the PNU number. with an income of £15800 and 30 hours pw I got about £20 pw towards £35 pw after school. I only know this as that is the difference between what I got then and what i get now that the childcare has stopped
    I'm going to feed our children non-organic food and with the money saved take them to the zoo - half man half biscuit 2008
  • minimoneysaver
    minimoneysaver Posts: 2,222 Forumite
    Part of the Furniture Combo Breaker
    How do you find out the PNU number? Is it the Ofsted Registration number?
  • minimoneysaver
    minimoneysaver Posts: 2,222 Forumite
    Part of the Furniture Combo Breaker
    Forgot to say, my daughter is starting a new nursery and it is over a year since I last had to do this. Just wanted to make sure that I have all of the details I need before I call. I've got the Ofsted reg, company reg numbers and of course the address!
  • Conor_3
    Conor_3 Posts: 6,944 Forumite
    flea72 wrote: »
    how do you know what help you get, as the award notices dont give you a breakdown

    Flea

    Yes they do.

    On the front page it states:

    SUMMARY

    Tax Credit for the period - see Part 2

    Working Tax Credit (other than child care) £xxxxx
    Child care element of Working Tax Credit £xxxxx
    Child Tax Credit £xxxxx



    On page 2 of the award notice it states:

    Child Care Costs
    The number of qualifying children cared for by a registered or approved child care provider was 1. You told us your weekly child care costs were £12.


    Then on page 3:

    Child Care Element of Working Tax Credit
    Child Care element from 06/04/2007 to 05/04/2008 (366 days) £xxxxx
    Total child care element of Working Tax Credit £xxxxx
    Reduction due to your income £xxxxx
    Amount for the period £xxxxx


    I don't know about anyone else but that looks like a breakdown to me. Perhaps you should take yours out of its envelope and look at it...:rolleyes:
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