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Tax credits and child care?

(7 Posts)
Beccawoo Wed 12-Feb-14 12:19:29

Hi, wondering if anyone has experience of and can advise on this? I'm looking to return to work pt in sept. Between us my DP and I should earn around £40k before tax etc, which doesn't go too far in Surrey! I've two dc, the eldest will go to school in sept, hence my return to work, but childcare is looking like around £240pw! Will I get help with this? If not it is almost looking like it isn't worth going back...
When I've filled in the forms on the tax credit page, it comes up with a figure of about £800 child tax credit just from now till April (seems a bit high at £400+ per month?!) and then adds on £55 childcare costs - £25 pretty month isn't exactly going to help with that?! Or is it just not dividing it up right, more money is for childcare? Also not entitled to any working tax credit? I thought I'd be that rather than child tax credits? All very confusing.....

yummystepford Wed 12-Feb-14 12:42:34

Those things are usually quite accurate but you can't know for sure until you apply, even then they usually change their mind sooner or later. I hate tax credits, such a shame I have had to rely on that money since having my dc!

CogitoErgoSometimes Wed 12-Feb-14 12:48:12

You've got an above average income and Tax Credits kick in at about £25k. If you deduct your childcare costs from your income and the result is not far below £25k then you'll only get a low award. The benefits calculator at www.turn2us.org.uk might be easier to understand than the HMRC calculator.

Beccawoo Wed 12-Feb-14 12:51:18

Thanks cogito, I'll try that. I know the income is above average, that's why I'm confused that they are suggesting such high tax credit award. But if I don't get anything then it sort of makes it pointless returning to work until both kids are at School, so need to work it all out.

Beccawoo Wed 12-Feb-14 13:20:59

http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-pay-childcare.htm

Am I right in thinking from these tables that with 2 children in paid for childcare, earning around £40k between us, we should get between £2370 and £7830 per year to help pay childcare costs? Doesn't seem to work out anything similar at all when I fill in all the online forms. Am I missing something somewhere? Will have to try to find an hour or two to call them I guess!

CogitoErgoSometimes Wed 12-Feb-14 15:14:13

The Benefits Calculator at the Turn2Us link I posted earlier is normally pretty accurate. It covers not just Tax Credits but also other benefits where applicable and breaks it down into weekly/monthly estimates of award.

Beccawoo Wed 12-Feb-14 19:38:47

Thanks, think I've figured out that they will in fact give me almost as much to go back to work to cover childcare costs as I get now for not having any income, which is great, was worried that after I'd effectively lost my tax credits and then paid childcare, what was left of my salary wouldn't be worth it. But as I'll still get a decent amount to help cover childcare then it definitely is!

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