Going full time, increase in wage & tax creds for childcare

Indiestark

Basically, my AI was 11300 approx (can't remember exact) and hubbies 19888 last yr. Our tax creds towards an average c/care cost of £78 are £30 a month.

I've now gone full time & our chilcare costs will be £101.25 per week - hubs is a tutor & so daughter goes term time.

My earnings are going to be £3500 more than last yr

when I phone tax creds on monday which is when i go ft, do you think we'll get any help? or will they base on last yrs earnings as within 5k inc disregard?

Icequeen99

Horseunderwater wrote: »

For childcare costs - it is not your income that is taken into account exactly. One child get 70% of £175/ week (£122.50) & 2 or more get £300 (£210) per week. So all y our child care costs should be covered based on what you stated above. Keep all receipts and invoices as they may ask for them at renewal next year. Mean while ring them up Monday and tell them of the change.

This is the second time I have seen you post this same thing. Childcare is included in the calculation just the same as any other element of tax credits. Therefore is tapered away as income rises. I think you may have misunderstood how it works. That is why even if you don't receive any of the childcare element itself, you may be getting more CTC that if it wasn't included.


IQ

Indiestark

IQ any advice? Thanks for your help before x

Icequeen99

Indiestark wrote: »

IQ any advice? Thanks for your help before x

Your rise won't affect tax credits immediately, as you say because of the 5k disregard. But it will be affected next year.

For your childcare - is it £101 for 39 weeks roughly which would equal about £78 a month so similar to what you are paying now? Or have I misunderstood your costs.

If the £30 is what you are getting now, then that won't change if your childcare costs are the same. It will change from April 14 when they use actual income for 13/14 to calculate the 14/15 award.

IQ

Indiestark

Hi no that is the averaged cost as our actual payments are £135 over the 39 weeks so we x by 39 and divide by 52 to get the £101 figure. x