Tax credits & child care costs

Abbafan1972

Hi there.

I have just started a new job and have had to start using the school club again, although it's more this time as I'm doing 1 more day than before. I will need to phone the tax credits and let them know the changes on Friday.

The school club will cost £74 per week, that is the actual amount I will be paying per week, bearing in mind this is only during term time (39 weeks of the year).

I need to ask how they work the childcare costs out? Do I need to tell them it's £74 per week, or is it worked out as an average? I am asking this because in the past there has been a descrepancy and the tax credits told us that the cost was less than what we said it was, as they checked with the school club (I can't remember the details though).

nikki&asha

Its done over the year - so £74 x 39 weeks= £2886/52 weeks = £55.20 per week. iirc they then round it up to the next pound so £56. If you explain over the phone they will work it out with you any way.
hth

Nikki

Abbafan1972

nikki&asha wrote: »

Its done over the year - so £74 x 39 weeks= £2886/52 weeks = £55.20 per week. iirc they then round it up to the next pound so £56. If you explain over the phone they will work it out with you any way.
hth

Nikki

Thanks for that. I did the sum the wrong way round and it came out as £98! That's where I was getting confused.

Wail

Just tell the operator it is £55.20 per week. Don't confuse them. They are dangerous if they are confused.

Abbafan1972

Wail wrote: »

Just tell the operator it is £55.20 per week. Don't confuse them. They are dangerous if they are confused.

Thanks for the replies. Actually it's £54 a week and not £74, was having a senior moment.

I told the operator it was £54 per week but only during term-time. He knew to do the above sum, which makes it £40.50, so he rounded it up to £41.

Actually he was very helpful! (A rare thing I know).

chelle_bell

No, no-one gets the full cost of childcare fees paid, there will always be a deficit.

On average its 80% they pay towards them....if you go onto the HMRC website, you can do a benefits calculation and it tells you how much you would be entitled to. Obviously the percentage you get from them depends on how much you earn ect, if you are on a low wage they'll pay 80% and a higher wage will be lower.

Be careful with this though, as they are changing everything this year with tax credits and there is talk of the childcare element being scrapped, so try not to rely on it for the long term.

Also, make sure you keep all your receipts and everything coz HMRC are chasing ppl for proof that you have paid your childcare or else you have to repay them back.

Abbafan1972

The operator said it was 70%.

The school club give me an invoice every week and a receipt when I pay them.

chelle_bell

I forgot to say -

Yes you work it out as an average. Calculate the amount of c.care you will need over the next 12 months, add it all up, they will split the amount so its an average each week, if that makes sense!? So add the amount and divide by 52 and thats what you'll get

AimeesMum_2

Talk of the child are element being scrapped? I've never heard of anything....only that there is discussions on it being increased? Xx