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Tax Credits and childcare costs

8 replies

Charlene1 · 13/06/2006 14:49

I am having a complete nightmare with tax credits.

I rang them ages ago and said I was looking for a job. I asked what they would pay on different salaries.
They told me it didn't matter what I earnt, as it would be calculated on dp's wages from last year.

Childcare costs for me working will be £210 every week

They told me I would keep my existing child tax credit award as it would not increase our household income by more than £25k
They said I would then get help of £147 pw childcare element

We have been overpaid, so they have reduced our Child tax credit. I can still keep this reduced amount when I am working. Fair enough I thought, I will use what is left of my CTC to make up the shortfall in childcare costs, and use some of my wages as well.

Today they have said that both of us working will take us over £31k pa so I will only get £10.74 pw CTC and £100 towards childcare.
As I will be paying back £13.19 pw for the overpayment, I will be in minus figures for CTC, and I would have to pay out more from my wages, leaving me with virtually nothing.

If I go for a slightly higher paid job, taking us to £34k pa, I will only get £89pw for childcare and £10.74 for CTC. Again, I would actually get less because of the overpayment.

Does anyone know if this is the right amount on £31k and £34k??

Their website is wrong, entitled to is wrong, citizens advice can't work it out, my ready reckoner from another website says: £66.34 pw towards childcare and £39.59 CTC - total of £105.93.

If this is right, then I will be working for nothing and we will be worse off. I thought they would cover most of it and I would use the CTC to pay the rest, leaving my wages to live on and pay off our debts.

If these figures are right, am I better off trying to get a higher paid job and getting no help with childcare, or sticking with low paid ones and hoping they will give me the said amounts??
Please someone, help quick, I am really stressed and upset over this.
TIA

OP posts:
Charlene1 · 15/06/2006 19:59

Steeled myself to ring again, this time they said on an income of £32500, I would keep my existing Child Tax Credit and get £47.40 in childcare. They worked it out on 1 child being in full time care, as I thought it was easier to see what it would be that way. I would only pay costs for 2 kids in holidays, so I didn't want to confuse them further.
If I earned £25k ( me going p/t, with lower costs, I would actually get £50 pw towards childcare, and my Child Tax credt would pay for the rest.

Does this sound right to anyone? Worked out, if I work p/t, I would still bring home the same amount as working full time, IF (!!!) today's figures are right. Or does this still sound "fishy"? I cannot add up for the life of me, but both jobs would net £100 after paying the shortfall for childcare, yet one is 17 hrs, 1 is 35 hrs.

OP posts:
schnapps · 15/06/2006 20:16

I'm not sure but I'm a single parent on £20,000 and I don't get anything towards childcare.

AllieBongo · 15/06/2006 20:31

what calculators can you use. i had the same probs, they suck

FrayedKnot · 15/06/2006 20:40

It isn;t true that they will pay on last year's earnings.

They recalculate on whatever you tell you are earning at the time.

Or they always have with me?

I agree it is impossible to work it out.

Charlene1 · 15/06/2006 21:15

I know, I now have 6 different figures for the same levels of income!

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Mirage · 16/06/2006 12:52

I don't know how they work it out.Our joint income is just over £30k & I was told that I would recieve no help with childcare costs as our income was too high.Previously I had been told that I would get some help if our childcare costs increased.When they did increase as I took on more work (ame self employed},I was told that it didn't matter what my childcare costs were as we weren't eligable of help anyway.Arghhh.

If I carry on working,I could be working for £1 an hour.I don't think its worth it.Sad

Mirage · 16/06/2006 12:54

Forgot to say,they have overpaid me too,so are going to claw that back.How they can over pay someone who gets the bare minimum from them,I don't knowAngry

Charlene1 · 19/06/2006 18:08

Just wondered, after October, ds will only be in f/t nursery in hols. Do I claim for 2 kids on "average weekly costs" or do I claim for 1 ft and find the extra money in hols, as they won't pay for changes in cost if it's less than 4 weeks?

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