Problems with 'short term' Tax Credit childcare payments

Twinmum21

Has anyone else had problems with Tax Credits payments for 'short term' childcare? (school holidays etc)


Every time I phone and speak to someone different, they give different advice. I'm now left over £300 out of pocket, as I expected one of these payments to cover my costs for the summer holidays. Rather than pay me the lump sum as they have previously, they have spread the amount over the remainder of the award period.

I arranged the childcare based on the information I was given, had that not been the case, I would have thought about it differently.

Regardless, they say I'm getting the money in my award overall, so annoying and inconvenient as it is, fair enough.

The problem I have now is planning for future holidays, no-one can seem to explain to me clearly how this 'system' works. One person says you need to ring up 'before' the planned childcare, another says 'after.' I was told you had 1 month to claim by one adviser, then 3 by a different adviser.

I can't seem to find anymore information on the net, and wondered if anyone else had encountered problems with this?

Thanks.

karenx

How are you £300 out of pocket if you are still going to get the money throughout the tax year?
For any change of circumstances you must inform them after the change has happened. They cannot take the info in advance.

delboysmith

Childcare is based on average costs e.g. 13 weeks holidays at 100 per week would annual costs 1300 and therefore average weekly costs of 25 per week and this is what the tax credits would be based on.

The earliest you can update childcare costs a week in advance before you start paying for it.

You are meant to inform any change within one month of the change but the system will still backdate 3months. So therefore you could still call 3months after starting to paid for it and still get in backdated (although the coalition government will probably tighten up this). Hence every advice you were given is right

New government legislation from this tax year means can just claim for short term childcare costs up to 10 weeks without averaging in out. but you need to ask for that. For example if just pay for childcare during summer holidays instead avg out over year would be just paid during summer holidays.

Murgatroyd21

As I understand it, although I stand to be corrected, Short Term child care costs are averaged over the period you use the childcare i.e. if for just 6 weeks during school holidays @ £85pw, would equal max 80% £68 x 6 weekly payments of £68pw. If you used it over a period of 10 weeks during which time you didn't pay for one week (eg in the middle) it would be 9 x 80% of weekly cost / 10 to get average weekly payment, so at £85pw would be £68 x 9 = £612 / 10 = £61.20, usually rounded up to £63pw. There is no run on payment and can't be used if already using long term averaging.

mumofronnienreggie

I did my renewal on the telephone only this week and iw as told that i could phone up no sooner than 7 days before the short term child care was required... does anyone know what is correct - I am really starting to panic now - this is my first year as single mum, i am having an aboslute nightmare trying to juggle children and keep my job going due to its unsocial hours... :-/ xxx