How much tax credits can I get for childcare?

KaratePigeon

Hello,
I'm so confused, I hope someone here understands the system better than me and can help!

I'm currently on maternity leave, but going back to work 4 days a week after christmas. Baby will be 8 months then. I earn about £20k, my partner is self employed and his income is really erratic so it's hard to estimate but is usually anywhere between £15-30k per year. We work different hours so hopefully can juggle most of the childcare between us, but need a minimum of 2 mornings a week (£25 for a morning at nursery).

It'd make life a lot easier if we put the baby in nursery for 3 or 4 mornings a week, but we can't afford to do that unless we get any help with paying for it. I had a quick go at the tax credit calculator and it said we'd get £378 a year towards childcare, and this seemed to be the number no matter what I put in the 'childcare costs per week' box, is that right? Does the tax credits you get not depend on how much you spend on childcare?

karenx

I think because you have a combined income of at least £35,000 you dont qualify for help so that figure will be for just child tax credits.
Have you looked into seeing if your employer offers childcare vouchers?

KaratePigeon

eek, so if you have a family income of more than £35k you don't get any help with childcare costs? :huh: I didn't realise the threshold was so low, that's mad, how can people afford to put their babies in nursery full time? Or have more than one child.

Yeah I vaugley remember my employer saying they do childcare vouchers but I don't know anything about it. Someone told me it wasn't worth it as it just means you get less tax credits? Am I right in thinking they mean you get paid a bit less as you get it as vouchers but don't pay tax on it? Is there any minimum/maximum amount for these?

Arrgh why does the system have to be so confusing.

DX2

KaratePigeon wrote: »

eek, so if you have a family income of more than £35k you don't get any help with childcare costs? :huh: I didn't realise the threshold was so low, that's mad, how can people afford to put their babies in nursery full time? Or have more than one child.

Yeah I vaugley remember my employer saying they do childcare vouchers but I don't know anything about it. Someone told me it wasn't worth it as it just means you get less tax credits? Am I right in thinking they mean you get paid a bit less as you get it as vouchers but don't pay tax on it? Is there any minimum/maximum amount for these?

Arrgh why does the system have to be so confusing.

You think £35k is low for a family of three? :eek:

KaratePigeon

lol I knew someone would say that. It doesn't feel like much when most of it goes on the mortgage (on a tiny 2 bed house). Struggling at the moment as I'm only getting SMP but it should be ok when I'm back at work.

we are lucky that my partner works nights so we don't need too much childcare but if in the future we needed, say, a full time nursery place for 2 children, then that combined with paying the mortgage would be more than we earned. I suppose that's why a lot of mums don't go back to work.

Indie_Kid

When baby is under one year old, the amount of ctc is doubled.

karenx

KaratePigeon wrote: »

lol I knew someone would say that. It doesn't feel like much when most of it goes on the mortgage (on a tiny 2 bed house). Struggling at the moment as I'm only getting SMP but it should be ok when I'm back at work.

we are lucky that my partner works nights so we don't need too much childcare but if in the future we needed, say, a full time nursery place for 2 children, then that combined with paying the mortgage would be more than we earned. I suppose that's why a lot of mums don't go back to work.

Thats the parents who dont usually think of things like childcare and how much a baby costs before having one!

Maybe you should look into moving to another area where houses are cheaper? If you are struggling with things

KaratePigeon

we have already moved to a cheaper area - 30 miles from my work so I spend loads on petrol and commute for 2 hours a day. DP works all over the place so his fuel costs are really high too.

Anyway I wasn't asking for sympathy or anything, just if we were entitled to any help with childcare costs. If not then obviously we will cope, just a bit suprised as I thought more people were entitled to it. We are not exactly earning loads, thought it was about average.

DGJsaver

what is the actual income limit for help with childcare costs ? and is it not based on the april - april figure anyway , which doesnt help those say on 20k for come of the year and 6k for most of it as for april to april they would still have `earnt too much` ?

mitchaa

Your income is too high, so you wont get anything towards childcare.

DGJsaver

mitchaa wrote: »

Your income is too high, so you wont get anything towards childcare.

Had we not established that already ? would it not be more helpful to actually TELL us the income limit ?