Childcare tax credits

g_jayne

Hi, I have a question about the above as I'm a bit confused and don't want to sit on the phone to HMRC for nothing!

I have read the info on this site about childcare tax credits and it says that you need to work over 16 hours a week and have a household income of less than £42,000 to be eligible.

My wife and I both work over 16 hours a week and our total income is £38,500 but when I enter our details into the HMRC tax credit calculator it says we would not receive any childcare tax credits.

Does anyone know why this would be, or am I better off ringing to double check? We claimed working tax credits last year but were told that this has now stopped due to the changes in benefits. However, we've only just started paying for childcare so I assumed we'd now be able to get the childcare tax credits.

Thanks in davance for your help.

zagfles

There is no set income threshold, it depends on your childcare costs and how many children (plus if you have disabilities etc). With high childcare costs you can get tax credits on income much higher than £42k.

But if you can't, can you get childcare vouchers from work? These will save you tax & NI.