Tax Credit Childcare Confusion

tracypee

I have two children aged 5 & 9.

My husband and I are both self employed. Our joint annual income is around 23k.

For the very first time, we have had to put the kids into childcare over the summer holidays. Previously I have been able to work around them but this year I have had to put them in 3 days a week for 4 weeks. Total cost £330.

Prior to putting them in I rang the tax credits helpline and they told me we would be able to claim back for most of the cost.

The award letter I got after they started states two contradictory things.

The first is that my childcare costs are only £215.21, that the reduction due to my income is £174.54 and that my amount for the period is £40.67.

The second is that they seem to be paying me an extra £80 a week for 3 weeks on top of my usual tax credits.

I phoned them for an explanation. The girl I spoke to, it was obvious she couldn't understand it either although she did a sterling job of trying to flim flam me without answering any of my questions directly. I asked for how it was worked out, how much I was actually going to get and she couldn't answer except to say it was correct.

I asked what % of my childcare costs I was entitled to. I mean, surely there is a table somewhere that says if your income falls between xk and yk you are entitled to z% of your childcare costs...but no. And she couldn't tell me how it was worked out. Is it a secret? Or is it too complex for the lay person to understand. In the end she told me I was entitled to 13% of my childcare costs. This doesn't seem very much considering our joint incomes. Also I should note that one of our children receives high rate DLA. I have no idea if that affects it or not. I know it does affect our child tax credit.

Are there any brainiacs out there who understand the system?

TIA

Tracy

Icequeen99

tracypee wrote: »

I have two children aged 5 & 9.

My husband and I are both self employed. Our joint annual income is around 23k.

For the very first time, we have had to put the kids into childcare over the summer holidays. Previously I have been able to work around them but this year I have had to put them in 3 days a week for 4 weeks. Total cost £330.

Prior to putting them in I rang the tax credits helpline and they told me we would be able to claim back for most of the cost.

The award letter I got after they started states two contradictory things.

The first is that my childcare costs are only £215.21, that the reduction due to my income is £174.54 and that my amount for the period is £40.67.

The second is that they seem to be paying me an extra £80 a week for 3 weeks on top of my usual tax credits.

I phoned them for an explanation. The girl I spoke to, it was obvious she couldn't understand it either although she did a sterling job of trying to flim flam me without answering any of my questions directly. I asked for how it was worked out, how much I was actually going to get and she couldn't answer except to say it was correct.

I asked what % of my childcare costs I was entitled to. I mean, surely there is a table somewhere that says if your income falls between xk and yk you are entitled to z% of your childcare costs...but no. And she couldn't tell me how it was worked out. Is it a secret? Or is it too complex for the lay person to understand. In the end she told me I was entitled to 13% of my childcare costs. This doesn't seem very much considering our joint incomes. Also I should note that one of our children receives high rate DLA. I have no idea if that affects it or not. I know it does affect our child tax credit.

Are there any brainiacs out there who understand the system?

TIA

Tracy

No, unfortunately there isn't a table.

You get 70% of your childcare costs as a maximum.

Is your childcare £330 for 4 weeks or £330 per week for 4 weeks?

IQ

tracypee

It's £330 total.

dundeediva

£330 for 4 weeks is £82.50 per week. You get a maximum of 70% so a maximum of £57.75 per week towards child are but due to your income that amount is reduced to a lower amount.

tracypee

Yes,

That much I know already.

What I am questioning is why only £215 is my qualifying costs and why I am only getting £10 per week.