Child tax credit and childcare

Alexandria

HI all
I have just started working part time and informed tax credits of this. As we are on the basic rate due to partners earnings I did not expect anything to change but thought best to let them know.
I have come home this afternoon to find they have reviewd the award and reckon that I am now entitled to £2130.54 this year (£3696.60 child elements plus £545.34 and £207.11 family elements, reduced by £2318.51 for income)

I am convinced this is wrong and have called them to be told that its because I am now paying £75 per week in childcare. I though you only received credits for this if you were on a low income? my husband and I will receive a combined annual income of over £35K so I would have thought this is more than the limit (I thought it was something like £15k)

The thing is I have signed up to childcare vouchers and I believe you cant use both as in effect you would be receiving the taxable benefit twice. I don't want to stop my vouchers if they turn round and say this was wrong but equally I don't want to claim twice.

Any idease anyone?

flea72

no you cant use both childcare vouchers and CTC, so you shouldnt have given them a figure for childcare fees, since you arent paying cash for any.

the cutoff point for help with childcare where TC are concerned is £60k joint income, so yes, even on your household income you will be entitled to something, if you werent already using childcare vouchers.

hth Flea

Alexandria

Thanks for that Flea, I will tell my childminder not to register for the vouchers then (as we haven't yet started to do so) which i think she will prefer it this way anyway. I didn't realise the bar was set so high though as prior to having dd2 I was paying much more in childcare because I was working full time and never received any help from tax credits then and at the time our combined salarys would have been about £42k so still under the £60k.

flea72

depending on what you are paying for childcare though, you may be better off going with the nursery vouchers, rather than claiming through CTC.

have you tried using https://www.entitledto.co.uk, and changing figures around to see how much you would get if you didnt have childcare through CTC and paid with vouchers. it might give you some idea on which would be best for your situation

Flea

Alexandria

Well on entitled to it doesn't show me as eligible for ctc help with childcare which is one of the reasons I was so surprised. Thanks again for your responses.

Stylistic_2

You should use the childcare indicator which is on the HMRC website

www.hmrc.gov.uk/childcare

this will tell you if you are better off with or without childcare vouchers :j

Alexandria

Its weird because that calculator also shows me as not being eligible for childcare benefit on ctc!

jasper12

On the award notice, does it have both your income and your partner?

Alexandria

jasper12 wrote: »

On the award notice, does it have both your income and your partner?

Yes I checked that and all the info appears correct, I am just not convinced after the overpayments fiasco!

DaisyFlower

i'd give them a call and check, I was told £25k was the cut off point for childcare help and it tied in with an online tax credits calculator. Much better to sort now than have to repay in the future.

Alexandria

DaisyFlower wrote: »

i'd give them a call and check, I was told £25k was the cut off point for childcare help and it tied in with an online tax credits calculator. Much better to sort now than have to repay in the future.

See I never thought we would be entitled to it and I did check to be told that it was correct but I am honestly not convinced. I noted down the persons name and time of the call to be on safe side but other than that I don't know what to do. If I claim the vouchers as well then I am claiming tax relief twice which is wrong, but if I don't then they decide at a later date I shouldn't have got it I will have to repay and will have lost out on my tax relief for that period.
Why is it never simple.