Already getting maximum TC for childcare...to work the extra day or not?

AimeesMum_2

I work full time and my children go to a childminder for 50 hours per week.

The maximum I can claim for the two children is £300 which is very close to what I get per week in tax credits.

However, the cost per week is £375 (£75 per day). Would I get into trouble with anyone if I dropped a day at work by choice to save me some money?

I lose £64 for every day that I don't work (but if I chose a Friday I would only lose £53) but pay the childminder £75 for every day that I do work so I would be worse off financially working 5 days a week instead of 4.

Can I get into trouble with tax credits for this?

[Deleted User]

I don't see how you can get into trouble so long as you report the change in circumstances. Another point to take into account will 4 days equate to less than 30 hours as this could reduce your tax credit further?

AimeesMum_2

It would put me at 29.5 - I didn't realise that you got more if you worked over 30 hours? I could have a Friday off then and that would mean that I would be working 30 Thanks x

totallybroke_2

you tax credits will go down too as you are paying less in childcare costs

Vejovis

i thought you only got a percentage of what you pay? so if you pay less your entitlement would be less?

AimeesMum_2

My tax credits should stay the same as I am currently paying more for my childcare than I am allowed to claim for?

can someone clarify this please? x

AimeesMum_2

But the maximum tax credits that you can get the 70% on is £300 - but my childcare costs are £375 so I don't think that tax credits pay me anything on the extra £75 hence the reason I am paying more for the kids to be with their childminder that day than I am working x

Vejovis

AimeesMum wrote: »

But the maximum tax credits that you can get the 70% on is £300 - but my childcare costs are £375 so I don't think that tax credits pay me anything on the extra £75 hence the reason I am paying more for the kids to be with their childminder that day than I am working x

you get 70% of your child care costs up to a certain amount (£300), that doesn't mean you get the max whatever you're paying.

so if you're paying £300 you'll get £210. if you're paying £290 you'll get £203

AimeesMum_2

According to tax credits the maximum you can get is £210 per week. That's what I have always been told as I even called up before to tell them that the costs had went up over summer by £50 and they said they didn't need to know as I can only claim for childcare costs of £300 for 2 children.