Trying to return to work

mitchaa

http://www.hmrc.gov.uk/childcare/interaction-tc-cv.htm

I have worked out it would be more beneficial for me to take the child care element of Working Tax Credit, but I am currently receiving childcare vouchers, what should I do?
You will need to talk to your employer about leaving the childcare voucher scheme that your employer operates. When you will be able to leave the scheme will depend on the terms and conditions of the individual schemes.

Confirms my suspicion, you cannot claim both otherwise you will end up with a lot of arrears at some point in the future. I cant believe the idiot at the tax credits office said you could do this

Unless im missing something blindingly obvious?

alwaysonthego_2

For once I think Mitchaa is correct

Childcare vouchers

You can't claim help for childcare costs that:

• you pay with vouchers your employer gives you towards the cost of your childcare
• your employer pays

http://www.hmrc.gov.uk/taxcredits/help-childcare-costs.htm

mitchaa

alwaysonthego wrote: »

For once I think Mitchaa is correct

Now now play nicely, there are 690+ thanks to your left;)

GillzD_2

i was told by the guy from the tax credits over the phone you can claim for any deficit - infact was told on 2 separate occasions by 2 different people so i am sure i am right. you cant claim the full amount for both but you can claim for any loss after vouchers if that makes sense ie if your costs are only £200 per month and you claim £200 of vouchers you cant claim for tax credits but if your costs are £300 you casn claim £243 vouchers and £67 for tax credits.

alwaysonthego_2

Gill I am at the cab tomorrow, so I will double check for you.

surreysaver

mitchaa wrote: »

Are you 110% sure about this?

I dont believe that you can use BOTH

Can someone else confirm, deny this??? I think you need to get this checked out because there are lots of people who have fallen into this trap and are now in arrears of thousands.

You can do this. Your salary is reduced by the amount of childcare vouchers you buy (hence slary sacrifice) and your claim for childcare is reduced by the same amount. You then claim CTC on the amount remaining.

GillzD_2

i was told by the guys in the tax credit office when i called up to inform them of my new job and for my annual review pack its right.

surreysaver

It's very complicated, though, especially filling in the paperwork for the first time. I consider myself reasonably astute with financial stuff, but it flumuxed me!

mitchaa

GillzD wrote: »

i was told by the guy from the tax credits over the phone you can claim for any deficit - infact was told on 2 separate occasions by 2 different people so i am sure i am right. you cant claim the full amount for both but you can claim for any loss after vouchers if that makes sense ie if your costs are only £200 per month and you claim £200 of vouchers you cant claim for tax credits but if your costs are £300 you casn claim £243 vouchers and £67 for tax credits.

Got you now, so you can claim for the difference through TC?

Well 80% of the difference anyway as thats the max TC will pay out for. Although saying that with a £25k single income + your income i doubt you'll get anywhere near this 80% deficit paid for you

How much are your weekly childcare costs?

£243 worth of vouchers will actually only cost you £167.67 off your hubbys wage I take it you then take £243 off of your costs, (£56pw) and then tell TC the figure left over?

Marker_2

K just to get this straight, hubby is receiving childcare vouchers (how much if you dont mind me asking) and you are receiving the difference to possibly make it up to the 80%?

Will be in your position soon Gill, so would be great to know!