tax credits childcare - help i havent a clue!

pinky2681

Heres the storey:

I work part - time and my mum has my child (10months) my other boy is at school during my working hrs. I've been offered a full time job - my mum said she would have my children except 2 mornings a week as she works then herself. I have been looking at tax credits calculator and it says if i paid £50 a week in child care costs i'd recieve £47 tax credits a week and if i didnt pay anything out i'd get £10 a week.

i've NEVER had paid childcare before, so really really confused!

My questions are:

How does it work?do tax credits pay them or do i? Can i change the amount of hours i need childcare for? As i'd need childcare for 2 in school holidays.

Also my !!!!!! i've been offered alternate one week 8-4 the next week 1-10 so every other week i wouldnt actually need any childcare at all. What would tax credits do about it? would i get paid different amounts each week / would tax credits know?

ANY advice really appriciated thank u

LL30

Unless you've got a really flexible childcare provider, you will have to pay whether your child attends or not - I have to pay 51 weeks of the year

You pay the childcare fees (usually a month in advance - owch it hurts!) and your tax credits either come weekly or monthly depending on how you want them. Tax credits don't have anything to do with your childcare arrangements, they don't even check with the provider that you're using them UNLESS you are chosen at random to prove your childcare costs (they send out letters to random people to do spot checks) Also, the provider must be OFSTED registered.

I pay £73 a week, so I multiplied that by 51 and divided by 52 to give my figure to tax credits - I think anyway, it was a while ago. If you rent, your childcare costs can be taken into account for HB purposes, but they obviously take into account any contribution from tax credits also. Does all that make sense? Been up since 4.30 due to 1 yr old with a virus...yuk!!

karenx

The weeks you still need childcare you still need to pay your childcare provider as they still need paid to keep the place.

mushy_pea

pinky2681 wrote: »

Heres the storey:

I work part - time and my mum has my child (10months) my other boy is at school during my working hrs. I've been offered a full time job - my mum said she would have my children except 2 mornings a week as she works then herself. I have been looking at tax credits calculator and it says if i paid £50 a week in child care costs i'd recieve £47 tax credits a week and if i didnt pay anything out i'd get £10 a week.

i've NEVER had paid childcare before, so really really confused!

My questions are:

How does it work?do tax credits pay them or do i? Can i change the amount of hours i need childcare for? As i'd need childcare for 2 in school holidays. You pay the childcare provider as usual. You will get your allowance for this in you tax credits each month. Regarding changes, there is guidance on this on the tax credit website, have a look, or call them to explain (remember to use www.saynoto0870.com) Bascially, they like you average it out over the year, but if you want, you can give them a call at the start of the school holidays, inform them of the additional hours/childcare costs, and then they will add it on for that period.

Also my !!!!!! (yikes!) i've been offered alternate one week 8-4 the next week 1-10 so every other week i wouldnt actually need any childcare at all. What would tax credits do about it? would i get paid different amounts each week / would tax credits know? ANY advice really appriciated thank u Unless you find a very very flexible childminder, which this arrangement fits into, you will have to pay even if your child isn't there. Just like if your child is sick and can't go, you will still have to pay then.

Hope that helps. But my advice - call them.
(and well done on being offered the full time job!)

whitewing

Every other week, you may want to do housework etc so if you have to pay for childcare anyway you may want to use it and have some time to yourself.

pinky2681

Thank you!

Right for example if my childcare costs were £50 a week i'd times this by 51 and give tax credits the figures? I'd then pay the childminder for all the time, for example during shift pattern 1.30-10 i wouldnt need her but still pay her? that'd be ok as tax credits would pay most of it. It'd just be a shame to send him rather than spending time with him you see.

Then during school hols i'd ring tax credits and tell them my new figures for that week? Or would it be easier to work it out before hand and get paid the extra each week? I'm thinking the school do a school holiday club, i'm not sure if this would be ofsted registered etc.

I can beleive tax credits dont check up on these tho!

argh so nervous!!

LL30

pinky2681 wrote: »

Thank you!

Right for example if my childcare costs were £50 a week i'd times this by 51 and give tax credits the figures? I'd then pay the childminder for all the time, for example during shift pattern 1.30-10 i wouldnt need her but still pay her? that'd be ok as tax credits would pay most of it. It'd just be a shame to send him rather than spending time with him you see.

Then during school hols i'd ring tax credits and tell them my new figures for that week? Or would it be easier to work it out before hand and get paid the extra each week? I'm thinking the school do a school holiday club, i'm not sure if this would be ofsted registered etc.

I can beleive tax credits dont check up on these tho!

argh so nervous!!

Lol, it's a mare isn't it! Work out the childcare for both your los - check first with your childminder how many weeks grace she allows a year, I'm unlucky with having to pay 51 weeks! If it's £50 a week, you need to times it by how many weeks you have to pay, and divide by 52 to give you your average weekly cost. For after school club, work out how many weeks he will go and times this by the cost per session, then divide by 52. This will give you your average weekly cost for that childcare. Add the 2 figures together and that will give you your average weekly cost...I think, anyone correct me on any of that? Daughter's had me up since silly o'clock again!!

Sometimes it's nice to have that extra childcare even if you don't need it, always handy if you've got something that needs to be done that's not lo friendly! xx

pinky2681

arrgh i'm confused! Can some one show me how to work it out if i just give examples please i can use these for actual figures then.

OK so example:

Childminder chargers £50 a week for ds2 and i have to pay 51 weeks weather i send him or not.
Ds 2 will go to holiday club 2 sessions a week which costs £50 a week. He will have to attend for 10 weeks over the year in total.

lorelai34

For the childminder you would do 50*51/52 which comes to 49.03 which gets rounded up to 50 and that is your weekly cost.
For the holiday club you do 50*10/52 which is 9.61 so gets rounded to 10 and that is your weekly cost.

GobbledyGook

LL30 wrote: »

You pay the childcare fees (usually a month in advance - owch it hurts!) and your tax credits either come weekly or monthly depending on how you want them. Tax credits don't have anything to do with your childcare arrangements, they don't even check with the provider that you're using them UNLESS you are chosen at random to prove your childcare costs (they send out letters to random people to do spot checks) Also, the provider must be OFSTED registered.

New childcare claims will not be paid out until AFTER they have checked with the provider that the child is registered there. This is catching a lot of people out because they find themselves in a catch 22 - can't start the childcare until they get tax credits, but tax credits won't start until they begin childcare.

LL30

GobbledyGook wrote: »

New childcare claims will not be paid out until AFTER they have checked with the provider that the child is registered there. This is catching a lot of people out because they find themselves in a catch 22 - can't start the childcare until they get tax credits, but tax credits won't start until they begin childcare.

I didn't know about that, thanks! Although I can't see why a childcare provider would have a problem with registering the child prior to payment, particularly as it's in the childcare providers interest. Also most childcare providers have an induction process, which involves some free sessions so they can settle. I know I didn't have any problems, I rang them up and informed them and the change was instant, although I appreciate that this was on the old system.