30 hours free childcare stops my tax credit claim??

CountryGirl1985

Hello,
I'm trying to get my head around the new 30 hour childcare entitlement which I can get from 1st April. I currently claim working and childcare tax credits and wondering if I'd be better off using the new tax free childcare (the account where the government pay in 20p for every 80p you pay in ).
Once I use the 30 hours entitlement that won't leave much for me to claim from tax credits, only holiday childcare so I called the tax credit helpline to ask how i would only claim for the holiday costs and I was told 'once you opt to use the 30 hours free childcare service, you are no longer able to claim working or childcare tax credits'. The guy didn't seem very sure and was reading guidance whilst on the Phone! I told him I'm aware that if you opt to use the new tax free childcare system then this replaces the use of the tax credits but stopping tax credits when using the 30 hours was news to Me!
I've since found this on the government website "You can use 30 hours free childcare if you're already getting Universal Credit or tax credits, and you can still apply for 30 hours free childcare if you or your partner:" which suggests you can use the 30 hours funding AND claim tax credits.
Does anyone know what's correct?!
Thanks!

Icequeen99

You are correct - 30 hours is fine to use with tax credits, you obviously just claim less childcare support as your costs should go down.

With Tax Free Childcare - you lose the whole of your tax credit award (working tax credit and Child tax credit)

IQ

CountryGirl1985

Thank you, that's what I thought. Pretty worrying tax credit helpline didn't really Know!! I usually work out an average cost per week but just for the holidays I think this might be too small amount to claim. Do you know if you can just call and claim for the summer holidays and give an amount of say £100 a week for 6 Weeks?

Icequeen99

Yes you can do that - See Page 14 of the WTC 5 childcare guide for short term holiday costs.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/514107/WTC5_04_16_V1.0.pdf

You can choose to either average over 52 weeks or just start the childcare and stop it when it ends.

IQ

Jjjo

I have just been told that if you claim the 30 hours free, all child tax credits stop. How do I find out which will work out best for me?

Darksparkle

Jjjo wrote: »

I have just been told that if you claim the 30 hours free, all child tax credits stop. How do I find out which will work out best for me?

That's not correct unless the only reason you get CTC is because you have childcare costs

Icequeen99

Darksparkle wrote: »

That's not correct unless the only reason you get CTC is because you have childcare costs

As DS says that's not correct.

If you claim 30 hours free childcare - then the amount you can claim as childcare costs from working tax credit will of course go down (because your childcare costs are less). Child tax credit should not be affected unless, as DS says, you are only getting some CTC because of your childcare costs in working tax credit.

It is Tax Free Childcare (which is claimed on the same application system as 30 hours) that completely stops the whole tax credit award (working tax credit and child tax credit)

IQ

Megandale01

I have 30 hours free child care will this stop my tax credit claim?!

Icequeen99

Megandale01 wrote: »

I have 30 hours free child care will this stop my tax credit claim?!

As explained above, no. It is only Tax-Free Childcare that stops tax credits.

IQ

ADo_2

How do I close my tax free childcare account? It!!!8217;s making a mess of my tax credits and now I!!!8217;ve apparently been overpaid.

sheramber

ADo wrote: »

How do I close my tax free childcare account? It!!!8217;s making a mess of my tax credits and now I!!!8217;ve apparently been overpaid.

You cannot claim tax credits if you join the tax free childcare scheme.

Call the Childcare Services Helpline.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/childcare-service-helpline