Working tax credits and variable childcare

rainbow81

Hi, I am hoping someone could shed light on how to approach this as the tax credits person was not particularly helpful.

I am newly in receipt of working tax credits and my son goes to an afterschool playscheme and holiday playscheme.

I am trying to understand how I can predict the annual cost of childcare when I work shifts on a variable rota and the need for the playscheme changes according to this, and whether his dad can pick him up from school, etc.

I have informed tax credits of the average weekly cost over the next month as that is all I am aware of at the moment. It may increase in the Christmas holidays but I'm not sure yet.

In your opinion, is it better to over- or under-estimate childcare costs? I don't want to get a big overpayment and be in trouble but at the same time I am aware that there is a limit to backdating if my predictions are way under. Is it ok to ring up on a monthly basis (say) and let tax credits know the current costs? The woman on the phone didn't sound too happy with that when I offered for some reason :rotfl:.

Also, when they say to work out the average for 52 weeks, surely that takes into account the summer hoidays which I won't be claiming for this year anyway? I am so confused, apologies if it really is simple and I'm not getting it.

Icequeen99

Have you paid childcare costs for the last 52 weeks prior to your claim?

IQ

rainbow81

No, the childcare started a couple of weeks ago, and we are starting small and hopefully building up a bit more as time goes on. Or not, depending on my hours, and how my son copes.

Icequeen99

The tax credit regulations say that you should use the last 52 weeks/12 months when you first calculate.

Given that you don't have that information, it states that where there is insufficient information HMRC can estimate in accordance with what you tell them providing that HMRC think it is reasonable.

If you have entered into an agreement, you can use a written estimate of weekly charges given by the childcare provider.

On that basis I think giving a month and then revising is a sensible option and providing you keep records should your claim be subject to any investigation it should be fine.

Once you have had childcare for longer you might be in a better position to estimate over 52 weeks.

IQ

karenx

Have you checked with the childcare provider its ok to keep changing days and hours?

rainbow81

Thanks for the advice.

Yes the childcare is variable, I just have to book it by the saturday before it is needed for the normal rate, or up to the day it is needed for an extra £1.50. I know most providers aren't so flexible, and so more predictable. I am sure things will even themselves out in time.

Many thanks.