Nannies and working tax credit question.

[Exogenesis]

Hello,

Just a quick question. Can you claim working tax credits when using a Nanny?

I'm in an awful situation with No reception place for DD in september(long story) and no childcare. Its likely she will have a place in September but, I have no idea at which school and all the childminders who do school pick ups around here are pretty much already full. I work 2 1/2 days a week and really need the help towards the chilcare. If I have no childcare I have no job no job means no house its very stressful and I'm just hoping someone on here can set m mind at ease a little or at least point me in the right direction.
Sorry for rambling.

I can't see how you'd be able to afford a nanny when you're on WTC.

What i meant is can you get the childcare element to help towards the nanny like you do with childminders? I get some help towards the childminding costs and I was just wondering if its the same for nannies? Sorry if I didn't make that clear.

Yes, I understand that, but a nanny is going to be beyond the means of what CTC will pay out for someone working 2.5 days/week.

Unless you could maybe find a nanny share, perhaps.

But as long as it's a registered chilminder, it should work.

Yes thankyou I not very good at explaining myself I guess. It would have to be a nanny Share. Before school after school care holidays ect. I've just had so much conflicting advice I thought I would try on here to see if i could get some advice i guess. Thankyou again

As long as it's a registered childminder, then you should be able to use one.

But someone else might know better.

Thankyou. Have just found a site online that explains it a little. It seems that as longs as they are registered with Ofstead you can. You can also use childcare vouchers which is very useful as my work has a good childcare voucher sceme in place.

Yes OFSTED reg nannies can be paid with tax credits and vouchers but they can't provide the funded 'nursery' places for 12hours/week.

Make sure you get someone who is already registered as the process can take a long time! Also be prepared to pay all or part of the renewal fee for the registration. Finally make sure you've done your sums! Many nannies still quote pay net - you need to work in gross - and salary isn't the only cost of employing a nanny.

WTC5 (pdf) explains about childcare element of working tax credit.

Yes it can be used in England to part-pay an Ofsted Registered Nanny.

Reality however is that it probably does not happen very often... as with 1 child, the weekly limit is 80% of £175 which is £140. Unless the nanny is only working part-time, then that £140 would be used up quickly. This amount can be used to pay the GROSS costs of employing a nanny, which includes things like Employers NI and benefits in kind. (See WTC5 page 9)

How many hours of childcare would you be needing per week? Would that change during school holiday periods?

Childcare Vouchers can be used in England to part-pay an Ofsted Registered Nanny. Childcare vouchers are a salary sacrifice scheme, so the voucher amount can not put your pay below NMW. It also may affect pension entitlements, depending on the pension scheme provided by your employer.

I think the entitlement for WTC is based on the previous tax year... is that right? So if last tax year you didn't earn £6420 then you get full amount of WTC this year. But what then happens next year? Entitlement Table - anyone know how to work these things out?

Thankyou all.

I today spoke with my works Assistance programme thingy and they have pointed me in the right direction.

I know its going to cost alot more than a childminder however needs must and the way things are going I will be hunting down a nann share ver soon.

again thanks for the advice and help.