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Confused about Child Element of working tax credit for a couple and 15 hours free child care at 2

(5 Posts)
MilkyVampire Sun 05-Feb-17 23:43:09

Hi, first time posting I think!

Really confused with whether we might be eligible for 15 hours free child care once our LG turns 2 this year, which would mean from September 2017 as her BD is April.

I've done all the calculators but it is really unclear regarding household income and says you need to be receiving for instance:-

'Child Tax Credit and or Working Tax Credit and have an annual income under £16,190'.

I'm in the midst of applying for jobs as I've been a SAHM since I was pregnant with this my first child. So if I give you a scenario based on a job I'm looking at and our income.

Other half gets £27250 Gross a year for 40hrs a week.

If I got this job I'd get roughly £275 a week gross but 38 weeks term time only spread over 12 months, so £10450 Gross a year projected.

I anticipate needing 2.5 days child care for my LG a week and family the rest and that would be about £42+£42+£11 = £95 a week)

But when I do the working tax calculator, it asks for my earnings for tax year 2015/2016, which was 0, as I was getting Maternity Allowance (not Statutory) plus not working and it says ignore MA. So it tots up the year as being just my partner's salary of £27250 and says I could get £240.02 every four weeks.

That was nearly two years ago though and I really don't get the bit about: 'Child Tax Credit and or Working Tax Credit and have an annual income under £16,190' for the 15 hours free child care at aged two.

Is that for a couple or just for me? If it's just for me then yes on this scenario I'd qualify but if it's for us as a couple then we'd get £27250 for 2015/2016 tax year so we wouldn't.

And for 2017/2018 our gross household income could be £38450. I haven't a clue what 2016/2017 would be.

Sorry this is so in depth and mathsy but I really need the help with child care costs, as working 30 hours a week I'll have £380 a month after child care costs, out of my monthly pay and to miss out on my daughters early days this seems harsh but we are struggling so I need to get a job and to build my career as in the midst of a career change.

My partner pays our mortgage and bills currently and has no disposable income. Also I'm nervous about my LG being without me after being a SAHM so long.

Hoping some mummy out there has some idea what I'm on about here! smile

BaileysAddict Sun 05-Feb-17 23:55:46

No you have to claim Tax Credits as a couple. If you don't then it's classed as fraud. So no, you definitely will not qualify

InTheKitchenAtParties Mon 06-Feb-17 00:01:39

You definitely wouldn't qualify. The threshold of £16190 refers to the whole household income, yourself and dh.

icclemunchy Mon 06-Feb-17 00:13:07

Although they ask for last years salary etc it is just because it is a known entity. You can give them your projections for the year we are in (so say for arguments sake you started the job the 6th April it would be 2017/18) and they will bAse your tax credit entitlement on that.

Next year you would be able to tell them what you actually earnt and based on that your payments could stay the same or go up/down for 2018/19

Leatherboundanddown Mon 06-Feb-17 08:59:13

You won't qualify for tax credits as your household income is over the threshold.

It would still be better to take the job as in three more years when dc is at school your childcare costs will decrese and your earning potential will increase without a gap in employment. Good luck for job.

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