Tax Credits Childcare Element and Odd extra days work/childcare

[myhipposlosthispottamus]

I am working two days (minimum wage). One day our two kids are with my mum the other day they are at a childminders. I get 70% of what I pay the childminder back through Tax Credits or it wouldn't be worth my while (I pay the childminder more than my hourly rate).

Work would like we to do some occasional extra days to cover sickness/holidays/busy times just as and when needed. Might be no extra days a month, may be one or two days.

Childminder may be able to cover some of these days or may have to get other relatives if she can't.

How does this work for Tax Credits.

I need to get the Tax Credits if I am paying the childminder or it isn't worth my while, I would be paying to work.

Has anyone any experience of this?

If you kept the receipts from the extra ad hoc days you could submit them at the end of the year and probably get an extra payment to compensate. If you were to add a regular extra day each week you could get the Tax Credit award reassessed. You're unlikely to get a permanent reassessment if it isn't a regular thing but it's certainly worth a call to the Hotline.

Thank you Cogito. I will give them a phone.

If it is less than 10 pound a week more then you won;t get the extra paid.

You can average the amount you pay her over a month/year and give that figure to the tax credits who will then pay you 70%. Like RedHelen says though if the difference between that and the figure they currently have is less than £10, then they won't adjust your award.

I don't think Cogito is right though - you need to report a change in childcare costs at the time, not at the end of a year, they won't backdate it.

The award assessment for Year 2 is based on the income (and child-care costs etc) for Year 1. It's only if your circumstances change significantly that they reassess the award in the middle of the current year.

I don't think that's correct - they adjust the childcare costs as they happen - they did mine very recently! It's income that they work out at the end of the year.

Thanks everyone.

Probably would only be one DC with the childminder for the extra day(s) so average probably wouldn't be increased by more than £10/week.

I just wish there was a box on the form at the end of the year to tell them what your total actual childcare costs were.