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can we get childcare tax credits?

(15 Posts)
MamaChris Fri 31-Jul-09 16:52:03

dp has been offered 3 more hours at work which would take total up to 17. need to decide whether it's worth taking them. child tax credits hot line says "call back after 31st" but we need to decide today!

currently, I am main earner, work 40 hours/week, earn 43k/year. currently get £243/month in childcare vouchers through work (costs me 243 in pre-tax earnings, so save the tax). dp works 14 hours/week, earns 4.8k/year. the extra hours would add an extra 1k. ds's childcare is 440/month. the question is, would we be entitled to childcare vouchers through tax credits? can't find the answer anywhere - just that it's income dependent.

does anyone here know how to do the calculation?

thanks.

missingtheaction Fri 31-Jul-09 16:59:23

go to their website and there is a calculator there - surely that will tell you?

FAQtothefuture Fri 31-Jul-09 17:01:36

their calculator is rubbish.

You could try tne one at www.entitledto.co.uk - generally more accurate smile

PavlovtheForgetfulCat Fri 31-Jul-09 17:03:35

I think you get the max childcare allowance through the salary sacrifice don't you? I think, if you increase the amount of child care costs and want child tax credits to contribute instead you would need to cancel completely the salary sacrifice and get ctc to pay, as I don't think you can mix and match due to tax issues?

Also, I think that as your DP works less than 30 hours, you would not be entitled due to number of hours worked...

but hopefully someone will come along to help you further?

MamaChris Fri 31-Jul-09 17:04:45

thanks. tried entitledto.co.uk. said we'd get 0 working tax credit and 1.75 child tax credit per week. didn't mention childcare - does that mean we're not entitled to any?

(the fact that it said 0 for working tax credit and didn't mention childcare made me think it just didn't cover childcare).

MamaChris Fri 31-Jul-09 17:07:10

pavlov - I understood the magic number was 16 hours/week, which is why we were wondering about the extra hours that would push dp from 14-17. but if it's 30, then, no good.

yes I get the max childcare through salary sacrifice. but dp gets no childcare vouchers through work. if you can't mix and match, then probably also a no go for that reason. thanks.

PavlovtheForgetfulCat Fri 31-Jul-09 17:07:28

Did you complete the big about paying for childcare right at the beginning of the form?

LIZS Fri 31-Jul-09 17:10:41

isn't the childcare element included in one of them anyway? tbh I'd be surprised if you qualified as that is deemed a reasonable gross income (46k rings a bell as the cut off). How old is ds , if over 3 you'd get free entitlement via the LEA for at least 12 1/2 hours.

FAQtothefuture Fri 31-Jul-09 17:13:55

I understood that you have to be working a total of 30hrs between you to get WTC's?

PavlovtheForgetfulCat Fri 31-Jul-09 17:15:17

FAQ - I think that if one of you is at work part time, you don't qualify for the childcare element, even if you get the wtc element? I am no expert though!

LIZS Fri 31-Jul-09 17:15:18

Check here. Childcare element comes under WTC

MamaChris Fri 31-Jul-09 17:18:44

OK - that's clear LIZS. we're over 25 (ds is 18mo, so no free childcare there).

oh well.

no point taking the extra hours then.

time for dp to phone boss.

thanks for all the help.

PavlovtheForgetfulCat Fri 31-Jul-09 17:31:47

sometimes it is worth taking more hours for the potential long term opps that might come from it? Next time, another few hours again mean you will be better off? Even if in the short term you are worse off>

DH working earns us nothing in that what he earns in income we lose in tax credits, but once he passes a certain point we will have broken that barrier and starting being better off by him working.

Is that possible in the future? Or is it not that type of job for him?

HappyMummyOfOne Fri 31-Jul-09 18:16:30

On £43k a year you earn too much for WTC and childcare assistance regardless of the number of hours worked.

You can both take the max allowance in vouchers to assist with the costs.

MamaChris Fri 31-Jul-09 21:35:02

well dp doesn't earn enough to pay tax, so vouchers don't help us there. dp's hourly pay is less than hourly childcare costs, so not much use taking on the extra hours. oh well. but thanks for the advice.

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