Thoroughly confused - child tax credits, childcare vouchers, working tax credits....Oxford

[CaringForPod]

Hello,

My husband and I are properly confused . How do we work out exactly what we are eligible to claim?

We've looked at the HMRC website, which quite frankly just makes things even more confusing!

Can we claim all three? How do we know?

Does anyone know if there's some sort of service that offers advice? I think what we really need to do is to sit down and have a proper talk (in person) with someone who can guide us through this maze.

I'm normally OK with money-related things, but this has even got me stumped. Possibly the sleep deprivation at 32 weeks isn't helping...

Any ideas?

there is a website called entitled to .com. you put in all your wages, number of children cost of childcare and it tells you what you might be able to get help with.
www.turn2us.entitledto.co.uk/

Thanks nancy75, will check it out.

The problem is compounded by my work patterns - after maternity leave, I'll go back to my job, which is seasonal and doesn't have a set number of hours/week. As a rule, for eight months of the year, I'll work 16 hours or more, but then the four months over winter I'll work fewer hours. So when it asks how many hours I work, I can't give an exact answer.

Do you think the Citizens' Advice Bureau would be able to help?

See if your CAB has a Benefits Adviser - they will be able to talk you through it all.

when claiming you make an estimate of what you will earn, they then base your entitlement on that. Then at the end of the year you fill in the actuals and it is corrected. Rule of thumb for me is to over estimate hours and wages and then if it's less they owe you and not the other way around.

Oh and the first time you claim it is all based on the previous year which often bears no resemblance to the current year. You have to wait for this to come through and then ring them (they are actually really good on the phone) and tell them what has changed and it's updated.

Arrggghhhhhhhhhh, my head hurts! I think I'll pay a visit to the lovely CAB people. Could they make this any more confusing?!

the formula for working out what you are entitled to is incredibly complicated, so much so in fact if you saw it it would look like a massive long list of letters and numbers (i googled it!!) So in short you won't be able to work it out.

You need to apply when the baby is born and see what they come back with. You apply based on the year just gone. Because you said your circumstances have changed you just ring them once they have got back to you and they amend...... really, really difficult to second guess.

There is a calculator (google child tax credits calculator) which you can plug in the best and worst case scenarios for you and then get an idea of what you'll get.

Your employer should be able to help with the childcare voucher bit.

and don't forget to apply straight away, and also apply for child benefit too.

There is a calculator provided by HMRC which tells you if you are better off with child care tax credits or childcare vouchers - you can't have both.

Mranchovy - yes you can have both child tax credits and childcare vouchers.

Where the issue between the two arises is that if you have childcare vouchers then this reduces the amount of childcare you actually pay for and can reclaim through tax credits.

It varies depending on individual circumstances whether it is better to have the vouchers or not to have them and get extra tax credits.

Yes of course you are right Morph2, what was I thinking

Oh my word, who devised this system? Seriously, it should be a recommended form of contraception!

So, even if I'm not going to be using childcare for nine months or so, do I need to apply as soon as the little fellow makes his debut?

Child Benefit is what used to be called Family Allowance, right? I know I apply for that straightaway, but not so sure about the others.

CAB here I come...

WTC for a couple is capped at around £17k so if your joint earnings are over this you wont qualify.

If your joint income is less than £40k you will get some CTC.

If you earn less than approx £26k you could get help from tax credits with childcare costs providing you both work 16 hours a week. Over £26k with just one child usually excludes you from help with childcare costs.

The vouchers can be very good but if you qualify for help from tax credits its usually best to go that route. Although you can claim for both you cant on the same amount - ie childcare £400, vouchers cover £243 then you could only declare your childcare costs to tax credits as £157.