Tax Credit, Childcare element

MikeR71

I am a little confused about this and was hoping anyone could help please.

I applied for working tax credit childcare element in June last year as our twins started nursery with very high cost (£265 a week for both kids). Our combined salary was roughly £52,000 so we have been receiving about £25 a week, which wasn't much but helped with the fees. From January this year we have both received slight increments so our combined salary will be £57000. Do I need to tell HMRC of this now or wait until new assessment forms are due in April? Will they claw back any of what they pay us when they find out we have had increases?

In general, how will they know how much we pay the nursery and do they check our incomes or just rely on what we tell them? I ask because my wife works extra sometimes so her salary is never the same each month. This creates a complication. It would be easier if they just checked our salary from their records so they could base their sums on accurate income rather than we having to estimate and get it wrong. So how do they do it?

Thanks all

Horseunderwater

It is based on last years income and this year there is a net disregard of £10k in salary increases - next year that goes down to £5k based on this years income. But to get it accurate if it worries you, you can give them an estimate for this years income by phone if you want to, but I do not think that there would be too much of a problem if you wait until the renewal pack arrives and you have definitive income amounts available. Keep records of all child care payments made to nursery as they do sometime audit these claims and they can sometimes check earlier years too.

MikeR71

Thanks for the reply.
I will wait for the renewal pack. I just don't want to end up owing anything from last year. I think we were underpaid as my wife was on maternity and I didn't include this in the form by mistake. But I can't be bothered to argue it.