Tax Credits vs Childcare Vouchers

hellies

Is it true that there is an issue when claiming both?

I used the childcare vouchers scheme (when I was working before maternity leave) and didn't declare it when claiming tax credits. i am returning to work in october and was hoping to use the vouchers scheme again, especially as I now have two little ones to pay nursery fees for! But I am now unsure if this breaks the rules as someone told me that its not worth claiming both due to tax credits being worked out on taxable pay, or something ?????

I wasn't told this by my HR advisor or the nursery, and the tax credits office obviously know i pay for childcare and didnt ask me if i use vouchers? Loads of people at work use the voucher scheme and no one has ever mentioned or advised that theyve come accross this problem.

I really hope the persom that told me is wrong, as I REALLY need to make that saving! :eek:

glitterkitty

you cant claim the childcare element of CTC if you have childcare vouchers. its against the law. you can only claim the excess (i.e if you pay £105pw CC and have CCvouchers of £100pw, you can only claim £5pw CC)

[Deleted User]

If you are using the childcare vouchers scheme AND declaring childcare costs to TCO you are commiting "fraud".

You either get help from TCO or use the vouchers which you get a tax break on. When declaring your income at the end of the tax year to TCO you can also deduct the amount you spent on childcare vouchers.

If you have been doing both you need to let TCO know immediately. If you are chosen for a compliance investigation it could become very problematic if you have comitted "fraud" on purpose or by accident.

glitterkitty

you could easily be picked for a compliance investigation, as it tends to be the people with childcare costs who are randomly checked, as this is where a lot of the fraud happens.
You must inform the helpline STRAIGHT AWAY

hellies

Blimey, I had no idea!! I better spread the word, I dont think anyone at my work knows this.

I think i will be better off to claim TC, and leave the vouchers.

Thank you for the advice. Now i need to reevaluate my budget...

hellies

glitterkitty wrote: »

you could easily be picked for a compliance investigation, as it tends to be the people with childcare costs who are randomly checked, as this is where a lot of the fraud happens.
You must inform the helpline STRAIGHT AWAY

Oh dear Thank you for the warning

i'll call them in the morning, and arrange to repay the overpayment. Now i really need to reevaluate my budget....!!

glitterkitty

it'll probably just reduce your payments rather than land you with a bill, but yeah, ring them in the morning!! 0845 300 3900