Discounted Childcare -will I need to tell Tax Credits

Kohei

Hi - just a quick question and hope someone can help?!

I have applied for a job with a childcare company and have got an interview next week (hooray!). In the information they have sent me they, it says that staff get a 20% for their childcare costs, if you place your children with them obviously....

If I am successful and decide to put my children into their care, would I need to tell tax credits that I get a staff discount, or would I give them the normal cost without the discount.

I don't want to do anything wrong, but at the same time.... whats the point in getting a 20% staff discount if the tax credits you get will be deducted anyway?

I have looked on the tax credit website, but there isn't anything about type of scenario.

Would appreciate help/advice.... and fingers crossed I do ok at the interview!

ML ;-)

DaisyFlower

Of course you have to tell them, you give them the actual figure you pay.

If you dont tell them and they do a compliance check then you could be prosecuted for fraud, not to mention the implications on the job with the nursery being onsite.

Kohei

Thank you DaisyFlower. I thought this would be the case, but I know someone who works for another childcare company, gets staff discount but doesn't tell tax credits. She said that she asked them a while ago if she needed to declare the discount and the customer services person she spoke to said no.

bestpud

The point of the 20% discount is you pay less.

In your case, you pay less of your share and the state pays less of their share, so you will still gain.

Absolutely you need to tell them - otherwise you are committing fraud by claiming for more than your actual costs.

Word of mouth is a dangerous thing to base benefit decisions on!

shell_542

If they check, they will ask you for childcare receipts I believe. Your childcare receipts would not correspond with the figure you gave them.