Childcare - how does the free 15 hours and claiming tax credits work ?

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The way my proposed nursery quotes the free 15 hours is £4.03 an hour for 15 hours a week over 14 weeks (this last term) equals £846.30 divided by 4 months = £211.58. This would be discounted from the total cost of £1170 per month.

However, if I were claiming tax credits, then I know the £270 per week is more than the claimable £175 per week but can I still claim £175 or will this be discounted by the amount I get free which equates to £48.83 per week ?

I hope I will still be able to claim the £175 as even after adding back the free element of £48.83, bringing it to £223.83, this is some way short of the actual bill of £270 per week.

Thanks.

STU

Hi
Take it your child is 3yrs plus and is entitled to Pre School education? Depending on location, your hourly rate isn't right. In addition, and again location the overall amount may cause a problem. I'm involved in nurseries and have knowledge on NEF. If I can help!?

flea72

tax credits childcare help is based on the actual amount you have to pay out in cash towards your childcare. your bill should show total cost for childcare, how much is taken off for nursery funding, and your balance owing. you declare the balance owing to tax credits

F

flea72

if your childcare bill is higher than the maximum allowance allowed under tax credits, then it is in your own interests to set up with your employer the ability to claim childcare vouchers via salary sacrifice

F

property.advert

STU wrote: »

Hi
Take it your child is 3yrs plus and is entitled to Pre School education? Depending on location, your hourly rate isn't right. In addition, and again location the overall amount may cause a problem. I'm involved in nurseries and have knowledge on NEF. If I can help!?

Yes, child over 3 years old and entitled to pre school education.

Hourly rate given to me by nursery. Location Waverly, Surrey.

If my reading of the situation is correct, this free 15 hour thing is only term time. Thus, there is funding for circa 40 weeks a year. The nursery is working on 3 x 4 month periods, taking the total money due from the 15 week assistance and dividing it by 4, to produce a figure payable over the 4 months. Essentially, you have to recalculate the amount owed per month 3 times a year.

You can do the calculations how you want but you end up at the same place on an annual basis as long as the theory of less than 52 weeks funding is correct.

Perhaps you could give me the benefit of your experience and throw some detail at this as I for one could sure use the help.