why do tax credits need my payroll number?

becky678

I called the tax credits line to say i had started employment and wanted to claim childcare for my daughter. They asked for a payroll number. Can they see how much I am earning?

NASA_2

I'm nothing close to an expert on Tax Credits but do they not pay the childcare through your employer? They would need the payroll number to make sure it goes through the right way.

cfnc

Asking for a payroll number is automatic, as if you worked for a large employer that is how the payroll department would know who to assign tax codes ect to, that came from Inland Revenue ect.

If you dont have a payroll number because it is a small company just your company name and address and tax reference will surfice.

Kirsty

AsknAnswer

Tax Credit don't pay for childcare via an employer, even if your childcare provider is a creche facility within your workplace. All childcare payments go direct to the claimant. What they will need is the registration number of your childcare provider as they will only provide assistance with childcare costs if it is a registered provider who cares for your child.

However, you may be able to use "salary sacrifice" to claim vouchers for childcare if your employer and child carer both participate in the scheme.

cfnc

However, you may be able to use "salary sacrifice" to claim vouchers for childcare if your employer and child carer both participate in the scheme.[/QUOTE]

You need to check if this is more benefical than child care through tax credits as you can not have both and most people who are eligilable (sp) are better off with child care allowance through tax credits.

Kirsty

alwaysonthego_2

cfnc wrote: »

However, you may be able to use "salary sacrifice" to claim vouchers for childcare if your employer and child carer both participate in the scheme.

You need to check if this is more benefical than child care through tax credits as you can not have both and most people who are eligilable (sp) are better off with child care allowance through tax credits.

Kirsty

I thought you could not have both, but apparently you can.

Macro_3

Yes, you can have both but will need to play with the figures to see what combination works out best for you. Taking nursery vouchers reduced your taxable income which in turn can increase the amount of tax credits you are entitled to, but if you pay for x amount of childcare through childcare vouchers you will not then be able to claim for that amount in childcare tax credits.

Pepzofio

becky678 wrote: »

I called the tax credits line to say i had started employment and wanted to claim childcare for my daughter. They asked for a payroll number. Can they see how much I am earning?

Surely you've told them how much you're earning?

I was told when I initially claimed that the reason I did not have to send in proof of income was that "they were HMRC and would be able to find out if they needed to". Obviously they don't do this for every claim, but I'm guessing they do a certain number of spot checks or would investigate if a claim was flagged as suspicious.

TotallyBroke

Macro wrote: »

Yes, you can have both but will need to play with the figures to see what combination works out best for you. Taking nursery vouchers reduced your taxable income which in turn can increase the amount of tax credits you are entitled to, but if you pay for x amount of childcare through childcare vouchers you will not then be able to claim for that amount in childcare tax credits.

Yes that is correct.

If your salary was £20,000pa and your childcare was 500pmx12=£6,000 this is what you would tell tax credits. If you choose to salary sacrifice and get £300pm in vouchers then you tell tax credits that your wages are 20,000-(300x12) =£16400 but you then have to tell them your childcare costs are £6,000-3,600 (500-300=200) £2400. Based on the lower wage and the lower childcare costs you may not qualify for the childcare element.

I personally am worse off, I would lose more money on childcare element of WTC than I would save in Tax payments not by much but enough not to do it.

flea72

are you sure it was a payroll number, not the childcare providers registration number?

They dont ever ask for your payroll number

Flea

Pepzofio

flea72 wrote: »

are you sure it was a payroll number, not the childcare providers registration number?

They dont ever ask for your payroll number

Flea

I was asked for mine when I originally claimed. (I'm fairly sure it's on the application form.) It will be to do with the employment CoC rather than the childcare.