Work out Childcare and Income for the year or keep updating on changes?

machairs

My third is due in 2 weeks and as I am aware Renewal is upon us again, I want to be ahead of the game somewhat as time will be limited.

In this financial year there will be a number of changes to my circumstances;



I start ML on 20/4 and aim to return at the end of November. Usual entitlement plus I get half pay for approx 3 months on top of the £112.

New Baby will arrive on 21/4 (planned csection).

Slight reduction in one child's nursery fees. He would normally be in 3 full days but as I don't drive, dh is taking him in each lunchtime so 6 sessions become 5.

Increase in other childs after school care of 2 extra sessions until I am back on my feet. Difference is almost the same as the saving from other childs reduction in nursery fees.

I will make use of the 10 keeping in touch days and need to put baby into Nursery and pay for the sessions obviously.

When I return I intend returning for 4 days instead of the 3 I did last financial year. My income will go up but so will childcare.

Now, do I inform TC of each individual change or do I number crunch and work out an estimate and take the risk of being overpayed?

If I number crunch - would someone be willing to double and triple check it for me?

clairec79

I don't think you'd be able to claim childcare for the keeping in touch days (I may be wrong) but I'm sure it states that childcare cannot be claimed for the new baby while on maternity leave but can continue for older children.

Don't forget that you don't count any SMP as income for the year so will your declared annual income actually change this year? I would imagine it probably evens out, or if anything goes down so unlikely to take you over the limit, I'd just report change in hours when you return

DaisyFlower

Clairec is correct in that you cant claim childcare for the new baby until you actually return to work so any KIT days cant be claimed for. Childcare for existing children is covered for the 6 months OML but not during AML.

machairs

Thanks guys. In particular for the info about the KIT days - I would have included them in my estimate.

So, it's looking like I inform TC of my new addition and the average weekly cost of childcare for the eldest 2 for the 52 weeks between now and the end of the financial year?

When I return to work on 1/12, I inform them of the increase in childcare?

I give them mine and dh P60 info and in 09/00 inform them of the SMP?

A

machairs

Just been checking dates again. I will "spill" into AML by about 7 weeks. Does this mean I base my estimate on 52-7?

A

machairs

OK. Assuming I divide the childcare by 45 to get a weekly figure that gives me £110 per week. Inputted into the HRMC Calc I am entitled to £340 monthly which is more than I get at the moment so I am a little dubious about it's accuracy. However, I did only discover I was entitled to CTC in November so perhaps that's why the figures are different?

But, when I add in the third child (with no childcare for "it") it jumps up to £551 monthly which seems a huge jump given that the baby allocation is only £545. Does that seem right?

bobblebot

Hi,
Look at this page:
http://www.hmrc.gov.uk/taxcredits/faqs-childcare-general.htm
You can claim childcare for newborns as long as you are on maternity leave from work and going back after. I am putting my newborn in for 2 days a week to get him used to the nursery and so |i can make use and get in the gym and shift the baby weight. Hope this helps!

machairs

bobblebot wrote: »

Hi,
Look at this page:
http://www.hmrc.gov.uk/taxcredits/faqs-childcare-general.htm
You can claim childcare for newborns as long as you are on maternity leave from work and going back after. I am putting my newborn in for 2 days a week to get him used to the nursery and so |i can make use and get in the gym and shift the baby weight. Hope this helps!

Thanks bobblebot!! This will make a huge difference. Good luck with shifting the baby weight too.

A

[Deleted User]

If you go in to AML you must inform TCO that you are not being paid by your employer, you will not be classed as working for TC purposes so during this time you will not qualify for help towards childcare.

machairs

subsoniccoyote wrote: »

If you go in to AML you must inform TCO that you are not being paid by your employer, you will not be classed as working for TC purposes so during this time you will not qualify for help towards childcare.

Thanks for alerting me to this.

bobblebot

This says you claim childcare whilst on ML...confused now Mmmm

If you are already a parent before going on the maternity, adoption or paternity leave, Working Tax Credit is available if you worked at least 16 hours a week before the leave began. You can claim the childcare

WTC5 3

August 2007

element to help with the costs of eligible childcare for the new baby or child as well as for other children in your family. This will help you to settle a new baby or child into childcare before returning to work.

Claim Child Tax Credit and Child Benefit for the new child as soon as possible
Here:
www.hmrc.gov.uk/leaflets/wtc5.pdf