do I need to tell Tax credits now?

lindsaygalaxy

My DS ages 3 goes to nursery 3 days a week. We nowthe free hours towards the fees which has lowered the cost of nursery per week. We are also now using vouchers throug work towards the fees. On our TC claim is says the previous amounts for childcare costs but we do not recieve any childcare elelment on the award. Do we need to tell them now (and will it affect anything if we do not recieve any of the childcare element) or can we just wait for the renewal?

Calling them always takes hours!

Caz3121

I would tell them...are you sure you get nothing towards childcare?

eg couple working one child, combined income £25k no childcare costs = £285 per year for tax credits (wtc&ctc)
same couple with childcare costs of £90 per week would be £3,560 per year

Your new figure that you give them should be the amount you are required to pay so less the free hours and less the vouchers

lindsaygalaxy

Yeah we earn very close to the couple threshold (have 2 children - 1 nursery 1 afterschool club). It says on the paperwork the amount for childcare - amount to be disregarded and total = £0. We get some child tax credits.

LydiaJ

I agree. Tell them and check. What is the "amount to be disregarded"? My notices don't say that. They do say "deduction because of your income", and if it was that then you'd definitely need to tell them and I'm afraid it would make a difference.

Also, do the tax credits people know you are using vouchers? Because I thought the rules were that you can use vouchers, or you can get tax credits help with childcare, but not both. Maybe that's why they say they're disregarding it? I've never used vouchers, so I'm afraid I don't know much about that part of it.

zagfles

LydiaJ wrote: »

I agree. Tell them and check. What is the "amount to be disregarded"? My notices don't say that. They do say "deduction because of your income", and if it was that then you'd definitely need to tell them and I'm afraid it would make a difference.

Yes indeed, because the CTC amount is affected by the childcare award even if no childcare award is paid. So definitely tell them or you'll have an overpayment.

Also, do the tax credits people know you are using vouchers? Because I thought the rules were that you can use vouchers, or you can get tax credits help with childcare, but not both. Maybe that's why they say they're disregarding it? I've never used vouchers, so I'm afraid I don't know much about that part of it.

You can use both but you need to deduct the vouchers from what you claim in tax credits, eg if your childcare is £100pw and you use £55 vouchers to pay for it you can only claim £45 though tax credits.