Tax credit/childcare help

jojo461

I am currently receiving the basic child tax credit but will soon be going back to work and baby into childcare. I'm trying to work out whether i will be better off with tax credit for childcare or vouchers through salary sacrifice.
When i use the online calculator to see how much i qualify for with childcare the child tax credit increases slightly but the childcare element is zero. All other calculators say i will be better off with the vouchers.
What i'd like to know is when i fill the forms in for tax credits do i still enter my childcare costs even though i will be buying vouchers through my employer or do i just reduce my earnings due to the salary sacrifice.

Been trying to get through to the helpline but so far it's cost me a fortune getting through and then getting cut off as it's so busy.

Thanks for any help

Sam____2

are you single or part of a couple?

jojo461

we're a couple. All the calculators i use seem to say vouchers would be better for us but when I work it out myself using the online tax credit questionnaire it seems that tax credits would be better.
Funnily enough just got through to helpline and they're saying if childcare was through them i would get £47 per week as opposed to £20 without. Increase of £1400 pa.
With salary sacrifice i've worked it out at around £850 savings based on joint income of £19500 and £10600 and vouchers totalling £4224 pa.
I'm confused! Maybe i'm filling the questionnaires in wrong?

Murgatroyd21

When you use vouchers to pay for childcare costs it depends if they cover some or all the costs. If they cover all the costs, you can't include any childcare on your claim for tax credits. If they only cover part of the costs, you can claim for the amount you pay after vouchers. For your income, you can deduct the cost you make for the vouchers from your annual income figure that you declare to tax credits.

EG Annual salary £31000, deduction from salary for vouchers (actual amount you have deducted, not the value of the voucher) = total salary to be declared.