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Tax credits or childcare vouchers?

(14 Posts)
alkar Tue 14-Oct-08 13:33:02

I am going back to work in November after mat leave and I don't know if we will be better off claiming child tax credits or busybee vouchers. Does anybody know how to work out which is best please.

hana Tue 14-Oct-08 13:34:56

childcare vouchers are not income related - everyone is eligible, providing the scheme is offered by their employees.

alkar Tue 14-Oct-08 13:36:46

The childcare vouchers are offered by both mine and DHs employers so we know we can get them but we have been told you can't claim both vouchers and tax credits. I want to know which one we should claim to save the most money?

QuiteQuiet Tue 14-Oct-08 13:38:31

For me doing 21 hours, with childcare ctc worked out better than Busy bee.

hth

alkar Tue 14-Oct-08 13:39:37

How did you work that out quitequiet?

hana Tue 14-Oct-08 13:39:45

sorry, didn't know that, not eligible for ctc

QuiteQuiet Tue 14-Oct-08 13:41:04

I contacted BB. They explained how much I would get back.

I went on ctc calculator and it worked out to be more.

alkar Tue 14-Oct-08 13:54:39

Who / what is BB? blush

iwouldgoouttonight Tue 14-Oct-08 13:58:42

We claim them both - nobody has told us you can't do both.

iloverosycheeks Tue 14-Oct-08 13:58:49

I thought you had to earn less that £5000 for any benefits to be affected by childcare vouchers but i think there are different schemes in operation. can you ask your HR dept?

QuiteQuiet Tue 14-Oct-08 14:02:58

iwouldgoouttonight interesting grin I never thought of that.

BB = Busybee

catweazle Tue 14-Oct-08 18:01:14

You can do both but you have to declare your notional salary if you are also claiming the full cost of your childcare. (ie you can't give the income figure less the £243 pm)

I think it makes a difference at the lower end of the income scale if you are getting an amount for childcare specified as childcare on your WFTC award.

alkar Tue 14-Oct-08 18:34:24

Thanks for all the advice. I rang BB and I can claim ctc and the vouchers so it looks like we'll be doing that.

HappyMummyOfOne Tue 14-Oct-08 19:19:57

Be careful claiming both, if its not declared properly you can end up with a huge overpayment.

You can only claim assistance from CTC on the amount of childcare you pay over the voucher amount - ie if you get £300 of vouchers and pay £50 you can claim upto 80% of the £50.

If you qualify for CTC, in most cases you are better off with just CTC alone rather than both.

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