Is it working tax credit or child tax credit that goes towards childcare fees?

(6 Posts)
DontBiteTheBoobThatFeedsYou Fri 09-Apr-21 08:49:40

Because I've just been told we are eligible for 2 year old funding, but I wasn't sure whether it was worth going for because presumably it would reduce tax credits due to childcare fees reducing.

Basically, is it 6, one, half a dozen of the other?
And a bit of a pointless feat if it makes little difference?

OP’s posts: |
Wowyouareboring Fri 09-Apr-21 16:52:23

Working tax credits I believe

katmarie Fri 09-Apr-21 16:54:47

It's working tax credit. Which covers a max of 70% of your childcare fees. If your child is full time in nursery, then yes your childcare bill will go down, and your WTC will go down too, but not by a huge amount in my experience.

DontBiteTheBoobThatFeedsYou Fri 09-Apr-21 19:03:02

Thank you.

OP’s posts: |
DontBiteTheBoobThatFeedsYou Sat 10-Apr-21 09:58:49

katmarie

It's working tax credit. Which covers a max of 70% of your childcare fees. If your child is full time in nursery, then yes your childcare bill will go down, and your WTC will go down too, but not by a huge amount in my experience.

That's weird though, we get £20 a week for childcare fees but his fees are £800 a month.

Yet our earnings have been so pitiful (covid and just left uni) that we are entitled to 2 year old funding.

God knows how they work this out.

OP’s posts: |
katmarie Sat 10-Apr-21 15:50:44

I am yet to get to the bottom of how they actually calculate it, I think they deliberately keep it confusing.

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