tax credit question (child care element)

iammumtoone

I start a job next week. I need to inform the tax credits on Monday. Do I just need to tell them my childcare costs up to 5th April for this year? That will be fairly easy for me to work out.

I am concerned what figure I need to give for the following year my job is full time and ds will be at nursery for all term time and the school holidays but I am hoping to persuade some friends, relatives to have him on some days over the holidays but have no idea at this stage if that is possible or how many days that will be, likewise I will have holiday myself which hopefully I will take in the school holidays but some days may need to be taken whilst he is at school. How can I tell them my childcare costs when I don't know myself? As I wont know how many holiday days I need to pay childcare for.

If I work on worse case that he needs to be there for all of the holidays what happens at the end of the year if he wasn't, do I pay back the extra money? or receive less entitlement for the following year?

I appreciate this most be a common issue so would appreciate advise what figure people normally tell them.

Thanks

iammumtoone

blondebubbles wrote: »

Tax credits use the weekly childcare amount. So you would tell them what that would be if you know it.

With term time/holidays they average the costs, you wouldn't call every holiday. It's generally calculated on 39 weeks term time, 13 weeks holidays. Would you/family/friend be able to cover the full 13 weeks

I know the weekly costs for the 39 weeks this will not change. I don't know the costs for the 13 weeks holidays this cost is going to be a lot more expensive as he will need to be there all day. I certainly don't know anyone who can have him the whole 13 weeks the best I can hope for is to find someone for one or two day(s) a week but this won't be every week. I have spoken to some people and they said they will help if they can but won't commit and certainly can't tell me how many days.

Do you think I should put in for 10 weeks during the holidays? What happens at the end of the year do I then have to pay back extra / receive extra once I know what the days where.

littlemiss.k

If you overestimate, it will need to be paid back and if you underestimate then they can only backdate the underestimate for 4 weeks.
Most childcare places will still expect to be paid for the days off unless you give at least 4 weeks notice.

iammumtoone

littlemiss.k wrote: »

If you overestimate, it will need to be paid back and if you underestimate then they can only backdate the underestimate for 4 weeks.
Most childcare places will still expect to be paid for the days off unless you give at least 4 weeks notice.

Thanks is it best to overestimate then and be prepared to pay some back (is that what most people do?) do I need to keep all the nursery invoices so I can prove what I spent in the year?

For the school weeks yes I need to pay whether he attends or not but for the holidays as I understand it I just book what days I need.

littlemiss.k

I'm not sure hun. My childcare costs are over the amount that I can claim so it doesn't affect me but I would assume that you just go with the childcare costs as accurate as you can. You don't need to tell them if it works out being higher or lower than £10 per week when you know the 'actual costs'.

Icequeen99

iammumtoone wrote: »

Thanks is it best to overestimate then and be prepared to pay some back (is that what most people do?) do I need to keep all the nursery invoices so I can prove what I spent in the year?

For the school weeks yes I need to pay whether he attends or not but for the holidays as I understand it I just book what days I need.

It shouldn't matter - when you start off you need to claim using an estimate of your costs over the next 52 weeks. You then need to keep an eye on this estimate every couple of weeks looking ahead to make sure it is right.

As it is an estimate, technically they shouldn't ask for it back based on actual costs because of how the legislation is written, in theory they might try and you could appeal.

Use their calculator here to get the figure you need to use: https://www.gov.uk/childcare-costs-for-tax-credits/y

Remember to keep a print out of it and I would suggest you make a little note as to how you worked out your average.

IQ