Child care reclaim costs

naf123

Hi, 

On tax credits, I can claim 70% of childcare costs. How does one reclaim after school activities costs when I just have a receipt having paid for the term upfront? On the tax credit website it just asks how often I pay for it, weekly, monthly etc?

thanks  

Yamor

You should report the amount paid, the date you paid it, and the period it covers (i.e., the upcoming term). UC will then split it over the relevant assessment periods.

However, UC will not cover any costs paid more than two assessment periods prior to the assessment period in which costs are 'used' (that is, you will get paid for any costs 'used' up to the end of the second assessment period following the one in which you made the payment, but no more).
When they calculate how the childcare is 'used' up, they use a simple calendar day method, so it is irrelevant which days your child actually attends.

naf123

What is assessment period? thank you 

Yamor

Every Universal Credit award is calculated and paid monthly, the dates of which will depend on when the claim was originally made. Each month of entitlement is known as an "assessment period".

For example, if you claim on 21/11/23, then your first assessment period would generally be 21/11/23 to 20/12/23 (and you would get paid on 27/12/23). Your second assessment period would be 21/12/23 to 20/01/24 (and you would get paid on 27/01/24).

tomtom256

OP states Tax Credits not UC.

All I can suggest is you ring tax credits and ask them. I would have thought it would have had an option for a one off payment.

Yamor

Oops, misunderstood the OP!

For tax credits, you can just report the average weekly cost. The various options of weekly/monthly etc. are just to help you. What is actually important is the average weekly cost, so you can just put that down.

For example, if you are paying £1,000 per term, then the average weekly cost is (£1000×3)÷52=£58/week.

naf123

Thank you ! So for tax credits , does previous receipts help? Like I paid for after school clubs in April 2023 (summer term ) and September 2023 (autumn term ). 

Yamor

Those payments could help you calculate your average weekly cost, as past payments can be a good indicator.

That does not mean you are claiming back now for those actual costs paid then.