Child Care Element of WTC

gil13

Hi, just a quickie. I always assumed that if you did not qualify for the working tax credit, then you did not get the child care bit. However reading the language used in the recent annual review, it is not clear whether the 'child care element' is separate and was wondering whether it could be claimed for. If so we have missed doing it. My wife works p/time and our little un goes to a nursery one morning a week (not old enough yet for the "free" pre-school vouchers)

Elle00

gil13 wrote: »

Hi, just a quickie. I always assumed that if you did not qualify for the working tax credit, then you did not get the child care bit. However reading the language used in the recent annual review, it is not clear whether the 'child care element' is separate and was wondering whether it could be claimed for. If so we have missed doing it. My wife works p/time and our little un goes to a nursery one morning a week (not old enough yet for the "free" pre-school vouchers)

My understanding of this is that there are three tiers to tax credits. The lowest one is working tax credit and that stops when your household income reaches around £16kpa. Then the next one to go is the childcare element though unfortunately I do not know when this stops but think it's somewhere around the £20kpa mark. Once you earn over about £15/16kpa they start to decrease the entitlement from 80% of costs down to 0% when you're earning too much. The last one is obviously child tax credits and that runs until you reach about £60kpa (yeah, 'cos we're all gonna reach THAT target lol).

If in doubt - give them a ring and ask.

donnalove

Elle83 wrote: »

My understanding of this is that there are three tiers to tax credits. The lowest one is working tax credit and that stops when your household income reaches around £16kpa. Then the next one to go is the childcare element though unfortunately I do not know when this stops but think it's somewhere around the £20kpa mark. Once you earn over about £15/16kpa they start to decrease the entitlement from 80% of costs down to 0% when you're earning too much. The last one is obviously child tax credits and that runs until you reach about £60kpa (yeah, 'cos we're all gonna reach THAT target lol).

If in doubt - give them a ring and ask.

as long as you are both working over 16 hrs( or 1 person working over 30hrs i think and one claiming IB) a week and your income fits the criteria then you can claim the childcare element.

someone might be able to clarify the hours.

becky004

Elle83 wrote: »

My understanding of this is that there are three tiers to tax credits. The lowest one is working tax credit and that stops when your household income reaches around £16kpa. Then the next one to go is the childcare element though unfortunately I do not know when this stops but think it's somewhere around the £20kpa mark. Once you earn over about £15/16kpa they start to decrease the entitlement from 80% of costs down to 0% when you're earning too much. The last one is obviously child tax credits and that runs until you reach about £60kpa (yeah, 'cos we're all gonna reach THAT target lol).

If in doubt - give them a ring and ask.

I get the childcare element of CTC and earn more than 20k a year.

kelloggs36

Not everybody will qualify - it depends on your household income.

gil13

okay, sounds like it is going to be based on income it is probably the case that we wouldn't be able to claim. anyone else find the language used by revenue weird at times..

Batty_3

becky004 wrote: »

I get the childcare element of CTC and earn more than 20k a year.

I was on £24K and got £91 Childcare Component for two children, for before and after school, and every holiday.

It stopped when I stopped using childcare. I only get about £8 a week now until I'm unemployed and then I get it back but not WORKING tax credit as I wont be working...

So it's worth making enquiries

Batty_3

gil13 wrote: »

okay, sounds like it is going to be based on income it is probably the case that we wouldn't be able to claim. anyone else find the language used by revenue weird at times..

Yes it depends on income, but if you're paying out about £100 a week in fees then you might get 75p in the pound back if you qualify.

As there is an on line 'do I qualify?' bit on their website, it can't hurt to bung your joint incomes in and have a look!

Hope this helps?

caleo

gil13 wrote: »

okay, sounds like it is going to be based on income it is probably the case that we wouldn't be able to claim. anyone else find the language used by revenue weird at times..

Extremely weird!!:rotfl:

Try www.entitledto.co.uk . This calculator is fairly accurate and alot less long winded than the HMRC site.

Our joint income is over £40K and we get a percentage (not alot, but anything accepted!;) ) of our childcare fees which are £205 per week. I suppose it would go on your income as well as the amount of childcare you are paying.

Can either of you get Childcare Vouchers through your employers?

Caleo

mitchaa

It is possible to get childcare costs on an income over £40k but criteria need to be met.

Ie you must be paying over £175pw childcare costs. If you pay less you get nothing and it will only be a certain % of this £175pw, its not a lot.

In this case, it would be much better opting for the childcare voucher scheme as opposed to claiming this piddly amount through TC.

£243 worth of CC vouchers actually only cost £167.67 with the voucher scheme, so a saving of £75.33pm

If you have 2 working parents, both sets can do it then you would get £486 worth of vouchers for £335 so a saving of £150.66pm

£150.66pm is probably more than what you would get back in TC so the voucher scheme is worthwhile.