Separated Parents - Tax Free Childcare and Universal Credit

[11xyz]

Hi,

I am separated from my children’s mother.

I would be eligible to pay my share of the childcare through the tax free scheme but their mother is entitled to the childcare element of universal credit.

Can both parents be on different schemes? Am I eligible for tax free childcare if she is claiming for the childcare element? My research suggests that someone can’t claim for both but does that cover separated parents claiming via different methods?

Any help or advice on this matter would be greatly appreciated as it’s a very stressful matter given the costs involved with childcare.

If she's entitled to the childcare UC then that's 85% of the cost. Are you saying you're splitting the bills evenly? So she's getting 85% of her half paid for?

I'm not sure how that would work. When claiming the cost through UC you have to provide proof of the invoice amount and a copy of the bank statement that paid it, then they check that they match. It would make more sense for her to pay and claim all of it and you contribute separately to the remaining 15%.

Sorry if I've misunderstood somewhere, but I don't think it's possible to do both schemes for 1 child, even if it's across 2 households.

I think to he legible for tax free both parents have to work ? I don't know what the criteria is for uc childcare. Surely they would only be able to claim childcare for hours they work?

You could ask the nursery to invoice you both separately for half the hours, then each pay on whatever scheme. However, she (and therefore the child) would probably be better off if she paid and claimed uc element for the whole bill, then you added the equivalent of 40% of the childcare bill that you would be paying, to your maintenance amount.

So custody is completely 50/50 so any costs incurred by the respective parent is their responsibility. Stuff like uniforms are usually split evenly. She is of the mind the she can have 85% of her half paid for and that I am to pay full price or use tax free childcare.

I agree with you that she should pay all of it and I contribute half of what she pays but as we’re separated she differs in opinion.

My concern is that I would not be able to claim tax free childcare as there’s already a claim in for the same children using universal credit.

Both parents work full time Monday to Friday. Her salary is lower, she gets significant amount of help plus child benefit

OP you can't claim tax free childcare along side the mums UC. Also the mum may not actually receive the 85%, she will be awarded it but then the amount is reduced according to her income. So if she for example doesn't rent, and has a reasonably paid job she may well not get all 85%

You won't be able to no. As you understand the uc in payment would prevent you. What I'd suggest is you offering to pay the full 15 % that uc don't pay towards if she agrees to claim for all the nursery fees. Uc won't ask her to clarify what days are 'hers' and which are 'yours', and you'd almost certainly find that it would work out cheaper for both of you doing it that way. Quite frankly you only offering to pay half of the extra if she claimed for the full costs was a bit of a piss take and I'm not surprised she turned that down, that's of no benefit to her at all, the only person that would have helped is you.

At this present moment in time she is not working but due to soon, do you think I can set up TFC now and do you think anything will happen when she claims for the childcare element?

When you run the calcs I’m the one is worse off regardless as she claims child benefit and will get further help so despite my salary looking more attractive she is the one who will be better off.

Hi original poster - did you ever work this out? In the same situation myself!

It’s only up to 85% depending how much. She earns. Some uc claimants are better off using the tax free childcare 20% discount.

No op, the various schemes go with the child not with the parents. If she pays you can pay her upfront or back

Op if she hasn’t set up childcare choices and tax free childcare yet, it’s whoever does it first I think. You could do it now. Then agree to change it back if she helps you out.

my sons father makes me pay the whole nursery bill even for ‘his’ day and there is nothing I can do about it other than withdraw my son for that day but I also need to work that day so not a lot I can do!

I have rang back UC and tax free childcare today and literally neither of them know the answer to the question which is ridiculous. What makes you think it’s not possible just out of interest….have you tried?

For anyone who reads this in the future - I’ve had it confirmed by UC it’s possible. I am on UC. My son’s dad earns less than 100k. They have advised him to open a tax-free childcare account and for me to claim back my 50% through UC. Hope this helps! If you have any queries, don’t ring the helpline - seek support via the “payment” option on the UC journal.