To be confused? Help please!!

[SuzyCluless2019]

Sorry for vague title but I really need advice!!

I got confirmation that my 2yo DS is eligible for the 15hrs funding as I'm a single parent but I have no clue how it works... I'm guessing if you use the funded hours you get no other tax credits? I rely heavily on them so losing them isn't an option for me.

Anyone have any idea how it works and care to enlighten me?! Thank you!!!!

Far as I know the only bit of tax credits that could go down is any part that you are getting towards childcare (as your childcare costs will go down).

Tax credits would stop completely if you used the tax free childcare scheme

@JagerPlease thank you....

I'm just worrying about using the funding, but there will still be a big chunk of money that needs paying to the nursery as my DS does 2 full days at Nursery I'm panicking about how I'll pay the remainder of the bill that the funding doesn't cover

I don't know exactly how they work out what goes down and by how much, but I presume as getting the 15 hours at age 2 is fairly connected with being eligible for tax credits, it can't work to your disadvantage.

I know from talking to a nursery provider, that the 15 hrs for 2 Yr olds is about the only element that providers actually make their money back on so it seems to work for people!

If you use them as a nursery school that’s fine. If you use them for privately funded care it equates to £2k a year and won’t impact on your CTC too much. Hope this helps. Call entitled to and don’t panic

Thanks everyone. Have given them a call this morning and they confirmed funded hours does not affect tax credits. They just treat it as a decrease in fees (which it is I guess!) and calculate the remaining costs and and use that instead so I still get help with it!

Thanks to all those who posted. Hopefully this thread will help anyone else wondering the same thing in the future!