Pre School + Tax Credits

Ex-Spendaholic

My youngest will be 3 in October. Here where I live a child is entitled to a funded nursery place from the September after they turn 3 so she will miss out this year unfortunately.

However there is the option of private pre school groups which take a child from 2 years 9 months. These are run in churches etc. The one I am looking at will cost £35-£40 for 5 mornings per week. Would tax credits cover this? I know that childcare can be paid for - we don't have those costs as my parents look after the kids but I'm wondering if we'd be able to get any of this paid?

Thanks.

Rince

All depends on how much you earn. I'm sure someone will be along with the correct figures but i'm sure if your household income is more than approx £16K ? then you can't claim for tax credits. Once your child turns 3 the government give you 5 x 2.5 hours sessions a week for something like 38 weeks of the year (term time) for a nursery/pre school for free. Our nursery takes these off our nursery bill, we can use 2 a day, so they take 5 hours off our bill for each day we use them.

Nursery is normally around £35 per day. I have 2 children so it's costing me nearly all my wages !

If you are entitled to WTC then I think they pay up to 80% of the costs.

snugglepet20

I think you can actually claim the free nursery money as soon as your child is three provided you can find a nursery to accept it (private nursery will usually just give money off), that is the case here don't know if its nationwide. Pre-schools tend to take children in september like schools hence why you will miss out this time although you could put DDs name down for if someone drops out next term.
Re tax credits you will get nothing for childcare unless you and partner (if applicable) both work at least 16 hours a week. If you do you can claim for help how much you get is dependant on income etc.

Morporkian

Government currently pays for 12.5 hours per week in play school/nursery place.
However, come Spetember 2010, they will up this to 15 hours per week.
I know this because at the play school my daughter was at (starting nursery this month!) they started the 3 hour a day/15 hours a week a year earlier, along with some other places across the country.

You get the hours paid for you from the *term* following their 3rd birthday.
So it does not have to be the September after, it could be any time as long as where you are sending her takes new children at other times.

You can still claim Child Tax Credit if you earn more than £16,040, but it will be a reduced amount. I believe they use 39% of the difference (eg: [£20,040 - £16, 040]*39%) and if the amount you are entitled to in less than that amount, you do not get anything. If it is more, then you get the difference?
I am sure someone will correct me if I am wrong.

And Rince is correct, you can get back 80% of the cost via the Childcare Element of Working Tax Credit. For one child the maximum amount they'll consider when calculating is £175 (per week/month?), which is £140 that they'll actually give you. Obviously if you only pay £40, then the most you'll get would be able to get is £32.

Try looking on www.entitledto.co.uk - it might not be perfect, but will give you a rough idea

EDIT:
Oh yes, I forgot to mention that you both, individually, need to be working 16+ hours a week - thanks for that snugglepet!

Just to say though, here the play school did not/could not claim the money back from the Government until the next term after turning 3. I assumed it would be from when my daughter actually *turned* 3 (later November), but it wasn't until the January that it was free.

karenx

If you and your partner are both working 16hours plus per week you may be able to claim some money to help pay for it.
Is the church run group registered with ofsted? Or is it just a playgroup where you stay with the child? If its an ofsted place then you can try claim. If you have to stay with the child then you cant claim.
The whole point of the childcare element of tax credits is to help you pay for care for your child while you work. Not a place to take them to socialise while you are there also

moomoomama27

You won't get any help until the term after their 3rd birthday, which in your case is the January after the 3rd birthday in October.

If you and your partner both work, and both work more than 16 hours you will be entitled to childcare help, but if it's just so you can have a childcare place from 2 yrs 9 months then the answer is no, you will have to fund it until you are eligible (check your local entitlement) for the funded place.