Who pays what for childcare

shegirl

rambo29 wrote: »

She lives with her mam as a single parent.

In that case she'll get working tax credits and possibly have some included for childcare as a single parent only needs to work 16 hours.I'm not sure what,if anything,she'd get towards childcare just for one day though.

It's entirely up to you what you pay but tell her about the tax credits as it will benefit her and your child

DanE2010

If she is only working 17 hours a week then she will defo be entitled to the full 70% WTC childcare element towards her childcare costs.

I would find out how much she is paying out of her own pocket (so the other 30% and pay half of that)

I would make sure just incase she is asking you to pay half of all of it and she is pocketing the extra.

kilasuit

DanE2010 wrote: »

If she is only working 17 hours a week then she Should be entitled to the full 70% WTC childcare element towards her childcare costs.

I would find out how much she is paying out of her own pocket (so the other 30% and pay half of that)

I would make sure just incase she is asking you to pay half of all of it and she is pocketing the extra.

I have edited your post as she could be on a good hourly wage and therefore not entitled to the childcare amount. Unlikely but still best to not mislead at all

DanE2010

kilasuit wrote: »

I have edited your post as she could be on a good hourly wage and therefore not entitled to the childcare amount. Unlikely but still best to not mislead at all

The amounts shown are the total amount of tax credits you could get for the whole of the current tax year. This started on 6 April 2012 and will end on 5 April 2013. The annual income is your joint income if you're in a couple.

http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-pay-childcare.htm

kilasuit

DanE2010 wrote: »

The amounts shown are the total amount of tax credits you could get for the whole of the current tax year. This started on 6 April 2012 and will end on 5 April 2013. The annual income is your joint income if you're in a couple.

http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-pay-childcare.htm

even though that table is on HMRC it is flawed as £90 * 52 = 4680
70% of that is 3276
197 days of tax year left so divide 3276 by 365 * 197 = 1768.14
divide that by 28.14 weeks leaves 62.83 as a maximum weekly childcare part of WTC which is then still income accessed along with rest of tax credits.

So unfortunately its not as simple as you get 70% of childcare because that is the Maximum you can claim and be entitled to

DanE2010

kilasuit wrote: »

even though that table is on HMRC it is flawed as £90 * 52 = 4680
70% of that is 3276
197 days of tax year left so divide 3276 by 365 * 197 = 1768.14
divide that by 28.14 weeks leaves 62.83 as a maximum weekly childcare part of WTC which is then still income accessed along with rest of tax credits.

So unfortunately its not as simple as you get 70% of childcare because that is the Maximum you can claim and be entitled to

Im well aware the 70% is the max you can get for the childcare and then its tapered down based on your yearly income.

If she has started work halfway through the year at 17 hours a week what do you think her estimated income is going to be for this tax year? It would probably be under the taper threshold for WTC and therefore they would get the full 70% towards the childcare costs. Hense the word 'defo' was used, but you have corrected that as I dont know the persons income for certain which is fair enough, but seeing as its not a full tax year worth of work and only 17 hours im making an educated guess that it will be or that its gonna be pretty close to the full 70%.

kilasuit

rambo29 wrote: »

My ex gf has got herself a part time job on a friday and saturday.

How old is she? for NMW purposes?

rambo29 wrote: »

She lives with her mam as a single parent.

Not sure but Household income could be asked for i know i've had it in the past

DanE2010 wrote: »

If she has started work halfway through the year at 17 hours a week what do you think her estimated income is going to be for this tax year?

@ £6.19 (from Oct 1st) = 105.23 a week and 2946.44 until end of tax year no Nat Ins or tax on that unless different tax code to 810L
and it would be 5471.96 for full year so would be i reckon about 65% childcare per week for the rest of tax year on a guess

DanE2010

kilasuit wrote: »

How old is she? for NMW purposes?

Not sure but Household income could be asked for i know i've had it in the past

@ £6.19 (from Oct 1st) = 105.23 a week and 2946.44 until end of tax year no Nat Ins or tax on that unless different tax code to 810L
and it would be 5471.96 for full year so would be i reckon about 65% childcare per week for the rest of tax year on a guess

No I think your getting income tax and tax credits confused here.

The WTC income disregard is around £6000 on my phone so cant find the exact figures but that figure is what you can beforeyour income is used for tax credit purposes. So if you earn below that you automatically get the full amount of working tax credit PLUS if you have any childcare costs say for example of 2 days a week £60 you would get the full 70% of that £60 aswell as the WTC. Im not sure what your calcuoations are or wherr you have worked out this 65% but can you see what I mean now?

rambo29

Sorry my appologies on information given but its only 14hrs she would be working.

kilasuit

rambo its ok no worries

means none of above ir relevant but better you had been informed if it ad been