Child Care element of Tax Credits

alice's_mum

Hi, am after some input on the Child Care element of tax Credits. Currently don't get any money for child care as TC people say we earn TOO much! Have recently been offered more hours at work and was talking to school about after school club, teacher said we should get child care money from Tax Credits. I am now really confused as they have been adamant that we can't have child care costs, but she is sure we would be entitled, as she gets it and she is a full time teacher and oh works full time as well.

Our figures are
OH 37.5 hrs per week salary £27,220k pa
Me 19 hrs per week salary £7,340 pa
giving us a total of £34.5K joint income

We have no other salaries and I currently have to pay out for the kids to go to breakfast club which is £25 pw for both of them.

We get £41.87 per month from the tax credit people.

Can anyone tell me if this is right? should we be getting the childcare element of anything from the Tax Credits. and if I take on more hours which would be

OH same as above £27,220k
me 34 hrs pw salary approx £13K pa giving us a whopping £40k pa.

But child care would go up to £25 pw for breakfast club
and £40 per week for after school club

Now I have to be honest if I take the hours and get that sort of salary, I wouldn't be bothered too much with the tax credits, but need to know one way or the other whether I should be getting it now.

sorry this is so rambling, thanks for any help given.

Liz

Gaz83

If your joint income is £34.5k and your childcare costs are currently £25 a week I would not think you would be entitled to get anything towards them.

It would be the same if your joint income went up to £40k, if your childcare costs were £65 a week you'd be earning too much to claim anything back.

dori2o

£34,500 - 5220 (first income threshold) = £29280

£29280 * 37% = £10833.60 (Taper rate)

WTC Entitlement

Basic £1730
30+ hrs £705
2nd Adult £1700

Total £4135

Child Care £2080 (£50p/w x 52 x 0.8)

CTC Entitlement
Children £1845 x2 = £3690

Family = £545

so,

£4135 - £10833.60 = -6698.60 (therefore no WTC Entitlement)

£2080 - 6698.60 = -4618.60 (therefore no Childcare entitlement)

£3690 - 4618.60 = -928.60 (no CTC entitlement)

Family Element £545 /13 = £41.92 (Only entitlement available)


Use this system to work out your new childcare costs against your new income to see if you are entitled.

kelloggs36

You earn far too much to get any childcare costs back. it depends on circumstances whether they are payable - if you have a partner and both work then the limit is really low.