Tax Credits - childcare costs

rachymoo

Just wondering if anyone might know the answer to this. Our daughter was born on 30th December 2008 and so we have obviously been claiming Tax Credits for the past year. I recently returned to work and for 4 days per week - my daughter goes to family for 2 days per week (at no cost) and goes to a childminder 2 days per week, at a cost of £52.50 per week.

My annual salary is £14,421 and my partner's annual salary is around £18,000 (including overtime). Are we likely to get help with our childcare costs? The reason I ask is that I'm not sure because of the fact that I work 4 days (and my partner works 5 days), but she is only in paid childcare for 2 days - so the cost of childcare is quite low compared to our earnings, if you see what I mean?

I know the obvious way to find out is to call them and ask (and I am going to), however I won't have chance to do this for a couple of days and so am just wondering if anyone has any idea, in the meantime?

Many thanks

karenx

Opening hours 8.00 am to 8.00 pm, seven days a week
So you cant make a 5min phone call between these hours?

You could try putting your details into entitleto and see what that says. You will only get 80% paid though not the full amount

mitchaa

rachymoo wrote: »

Just wondering if anyone might know the answer to this. Our daughter was born on 30th December 2008 and so we have obviously been claiming Tax Credits for the past year. I recently returned to work and for 4 days per week - my daughter goes to family for 2 days per week (at no cost) and goes to a childminder 2 days per week, at a cost of £52.50 per week.

My annual salary is £14,421 and my partner's annual salary is around £18,000 (including overtime). Are we likely to get help with our childcare costs? The reason I ask is that I'm not sure because of the fact that I work 4 days (and my partner works 5 days), but she is only in paid childcare for 2 days - so the cost of childcare is quite low compared to our earnings, if you see what I mean?

I know the obvious way to find out is to call them and ask (and I am going to), however I won't have chance to do this for a couple of days and so am just wondering if anyone has any idea, in the meantime?

Many thanks

£32500 salary with only £52pw costs.

I very much doubt it, but worth giving them a bell just to be sure. If you are not entitled to it, you may want to see if your employers offer childcare vouchers.

1 of you could salary sacrafice £243pm gross (True cost to you £167net) and this would pay your childcare outright. Infact you wouldn't need to sacrafice as much as £243 gross as your costs are only (£52.50 x 52/12 = £227.50pm)

So you would salary sacrafice £227.50 and it would cost you in real terms around £150pm saving you around (£227.50-£150 = £75pm)

If you are unfamiliar with childcare vouchers, you would in effect pay the nursery with a voucher to the value of £227.50 but having only paid £150 for it through your salary. The saving in between obviously to your benefit.

rachymoo

karenx wrote: »

Opening hours 8.00 am to 8.00 pm, seven days a week
So you cant make a 5min phone call between these hours?

You could try putting your details into entitleto and see what that says. You will only get 80% paid though not the full amount

I am working between these hours for the next few days and then in the evnings I'm looking after my daughter so it's very hard to find a spare 5 minutes (although you're quite often on hold for longer than that, before you even get to speak to someone!). Though I asked for advice about tax credits, not about finding time to make the call - thanks for your concern though!

Many thanks for the replies. Unfortunately our childminder doesn't accept childcare vouchers (although she is definitely registered, so not sure why that is!). Shame really as that would be a big help. We're very lucky that our childcare costs are that low, though we only just manage to pay those so I'm very grateful they're not higher.

lynnexxxo

I would find out what company your employer uses for childcare vouchers and go onto their website and print out a copy of the 'advice for childminers/nurserys' and give it to your childminder.

It is no hassle for your childminder to accept vouchers, they need only to make a five minute call to the childcare voucher provider - the equivilent of setting up a direct debit.

I would make clear to your childminder using these vouchers will save you a fortune and is no hassle (in fact its easier as she gets paid direct into her bank account) for her. I would be really annoyed if she refused to do it .

mitchaa

lynnexxxo wrote: »

I would make clear to your childminder using these vouchers will save you a fortune and is no hassle (in fact its easier as she gets paid direct into her bank account) for her. I would be really annoyed if she refused to do it .

So would I, and look elsewhere.

rachymoo

I dont want to look elsewhere, as my daughter (12 months) has taken a while to settle into her new routine, I don't really want to mess it up again for her. She seems happy with her current childminder and I'm happy with her - it's really hard finding one that I trust.

She's reasonable though so i'm sure she won't mind sorting it out, if I explain to her that it's very easy to do.

Many thanks