Tax Credits Childcare Costs

AfterDark

Hi Looking for some advice, My daugther starts school in Aug and I Will need to use the schools holiday club for the holidays and inservice days ect.

I'm Sure tax credits normally ask want the weekly childcare costs are and they have to last more than 4 wks ect.... As I won't be paying childcare weekly and only in the holidays, I'm abit confussed.

I've spoke to a friend that told me "she thinks" you work out what the Holiday club will cost a year and then break that year down to weekly amount. Can any one confirm this ? have tryed to call them but can get through as there IVR keeps telling me there busy and hanging up :mad:

Does anyone know how this works with tax credits ?

sorryitsme

From what I understand you have to total how much the charges will be for the year then divide that by 52 weeks to work out the weekly cost.

Eg for 12 weeks of the year childare @ £100 per week is £1200.

Divide this by 52 (weeks in the year)

therefore so your weekly childcare for the year is £23.08.

I hope this helps.

enabledebra

I think your friend is right but you can work through your own calculations here:
http://www.hmrc.gov.uk/taxcredits/start/claiming/claim-children/childcare-costs.htm

and then use this calculator:
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm

newyearnewme_2

That was certainly the case up until April this year but I think you can now phone up at the start of the school hols tell them how much you will be paying and for how many weeks and they will then adjust your payments however just checked HMRC's website and can't find ay info??? Can anyone else confirm this??????

enabledebra

You're right, I didn't notice that plan in Labour's 2010 budget. Doesn't seem to have happened though? Maybe it needed legislation and didn't get sorted before the election?

Deepmistrust

AfterDark wrote: »

Hi Looking for some advice, My daugther starts school in Aug and I Will need to use the schools holiday club for the holidays and inservice days ect.

I'm Sure tax credits normally ask want the weekly childcare costs are and they have to last more than 4 wks ect.... As I won't be paying childcare weekly and only in the holidays, I'm abit confussed.

I've spoke to a friend that told me "she thinks" you work out what the Holiday club will cost a year and then break that year down to weekly amount. Can any one confirm this ? have tryed to call them but can get through as there IVR keeps telling me there busy and hanging up :mad:

Does anyone know how this works with tax credits ?

Times your weekly rate by 13 (the number of school holidays per year). Then add the cost of Teacher training days (usually 5 per year I think) days you will pay for childcare for (if applicable).
Then divide it by 52.
That is your average weekly childcare cost.

themonkeybutler

Alternatively, ring them when your child starts CC, and then ring them when they stop. IE "My child stared CC on XX and im paying £XX" and then 2 weeks later tell them its stopped. You can do this every time the holidays come around and it will save faffing about with calculations. The calculation is correct, but only really a sensible option if you have irregular regular child care - if that makes sense(!) IE one day this week, two days next week, none the week after, etc.