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Original poster

Starting childcare, tax credit help!

21 replies

Elizabmum · 08/12/2018 22:13

Hi everyone, I'm new!
My LO is nearly 17 months and in January will start at a childminders as I have a new job! Yay!
I was doing the tax credit calculator to see what we would be entitled to in terms of help. She will only be going 3 days a week, 5 hours a day so it will cost £90 a week

Mine and my husband's joint income is around £27000 a year

I'm just confused by the calculation? It says we would be entitled to-
£206 child tax credit
£0 working tax credit
£0 childcare element

Does this mean were not entitled to the childcare element? Can I use the child tax credit for the childcare?
If I took away the childcare, it says we will get £0 for everything so it must be the childcare making the child tax go up?
I'm so confused any help would be greatly appreciated!
I just don't want to start her in the childminders if I find out we can't get help and will have no way to pay for it!

OP posts:
Original poster
Elizabmum · 08/12/2018 23:42

Everyone gone to bed?🤣

OP posts:
nannynick · 09/12/2018 00:04

Perhaps try the other calculator you can get to from www.childcarechoices.gov.uk to see if any other schemes are better.

TulipsInbloom1 · 09/12/2018 00:08

The child tax credit is money into your account. Use it for whatever you like. Pay it to the CM and top up with wages.

Juanmorebeer · 09/12/2018 00:14

Hi I think by January it will be a claim for Universal Credit no more tax credits. Which area do you live in? You can check online if your area is full service. On that income you are unlikely to get help with your costs but you could look into the tax free childcare system instead.

TulipsInbloom1 · 09/12/2018 00:17

On that income you are unlikely to get help with your costs

I disagree. Dh and I have a combined pretax income of 36k. We receievd about a third of our total childcare bill back in the form of tax credits.

Original poster
Elizabmum · 09/12/2018 00:57

My see a is already in UC but I still get 60ish per month in tax credits

So the 206 a month isn't a glitch in the system? I thought to get the childcare element it would say how much childcare tax credit but it's 0

OP posts:
Original poster
Elizabmum · 09/12/2018 01:32

My area*

OP posts:
Juanmorebeer · 09/12/2018 12:38

Check this but you going into work is probably counted as a change in circumstances that will close your tax credit claim and start one for UC. Do you just have the one child?

Is your current tax credits claim based on just your husband's wage? How much does he earn?

Juanmorebeer · 09/12/2018 12:39

Tulip that is on tax credits though isn't it. UC is very different!

AnotherEmma · 09/12/2018 12:47

I suggest you visit or contact Citizens Advice, as they can go through all the figures with you and explain it.

I work for them but it's hard to give definitive answers without asking a lot more questions.

Are you working at the moment and if so how much are you earning? What will your new salary be?

You say you're getting £60/month tax credits atm, presumably these are child tax credits?

Since you are already claiming tax credits, it will be a change of circumstances and you shouldn't have to stop claiming and apply for UC instead. You would only apply for UC if it was a completely new claim.

That's the general rule, you would need to talk to Citizens advice for more specific advice.

Workreturner · 09/12/2018 12:51

I am single parent
My salary is £40k but I only work part time so actually £24k

I receive £307 WTC a month and
£771 CTC of which approx £250 is childcare (£90 a week I pay)

Original poster
Elizabmum · 09/12/2018 12:52

No juanmorebeer it's based on my predicted earnings as I started a few weeks ago, 8500 for my wages and 18500 for my husband. Yes 1 child at the moment!

OP posts:
AnotherEmma · 09/12/2018 12:52

PS There are calculators at Entitledto and Turn2us that are good, so you try those to compare the results.

Original poster
Elizabmum · 09/12/2018 12:57

Hi AnotherEmma! I plan on going to see CAB bevause this is all so confusing! Im earing around 700 a month, 8500 by the end of the tax year( i had a part time job before I got this one) I've been at my new job for about 4 weeks now. Yes the £60 is child tax credit! Im just worried that ill start the childcare and pay the upfront costs then find out I'm not entitled to much and will have to take her out again

OP posts:
Juanmorebeer · 09/12/2018 12:59

So you already have a current tax credits claim now? How long have you had the claim in place for?

AnotherEmma · 09/12/2018 12:59

Congrats on the new job by the way!
Why don't you try the calculators I suggested and then ask Citizens advice.
If you're not entitled to the childcare element of working tax credit, it's not the end of the world - you could look into childcare vouchers (if the scheme is still open, not sure) or tax free childcare. It's likely that you will still be better off working and using childcare.

Original poster
Elizabmum · 09/12/2018 13:11

AnotherEmma I did try the calculators, turn2us said 400 per month and entitledto say 200, I'm probably doing it wrong!

OP posts:
AnotherEmma · 09/12/2018 13:12

Oh dear! Yes definitely a Citizens advice job then!
FWIW it's not your fault as the tax credits system is slightly complicated. You would need to correctly input your total joint income for the last tax year (2017-18) and your predicted joint income for this tax year (2018-19).

AnotherEmma · 09/12/2018 13:13

...and you would need to correctly input your childcare costs too, I can't remember how it works off the top of my head but I think the tax credits office would need your total childcare costs for 2018-19.

Original poster
Elizabmum · 09/12/2018 13:13

Juanmorebeer, ive had child tax credit since August 2017 when my LO was born, but told them that I will be earning 2000 more a couple weeks ago and my entitlement went down by £10 a Month

OP posts:
Babyroobs · 10/12/2018 09:55

You don't need to claim UC, just update your tax credits claim. It might be worth seeing if you would be better off on Uc though as the childcare element of Uc is 85%.

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