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Original poster

Tax Credits Childcare Check

16 replies

marie201 · 29/02/2020 15:13

We received a request last month for more details for our childcare costs for the 3 of our children that are in childcare (we have 5 but the elder 2 are teens).

We supplied them our bank statements showing payments, letter from nursery stating monthly payment and a statement from school for before and after school care.

Today we have received the below.

Rose is the one that is at nursery and her monthly fees are £797 which makes them £183 per week (nursery only open 51 weeks per year) and we pay £93 p/w for the other 2 children (£46.50 each)

I assume that the issue is that the max we can claim for her is £175 per week?

My husband is disabled and receives ESA Support Group rate, PIP at standard rate care and mobility. I earn £115 p/w, CA and dividends of £7k p/a (I'm self employed) so I don't think that it's our income that's the issue?

Tax Credits Childcare Check
OP posts:
nannynick · 29/02/2020 15:35

Hold old is Rose? Would she get nursery funding soon and thus your childcare cost will drop at some point in 2020/21 tax year?

Original poster
marie201 · 29/02/2020 17:12

She's 15 months so Nov 18?

OP posts:
Babyroobs · 29/02/2020 19:45

Seems like a lot of childcare for earning £115 a week which I'm guessing is what they are querying. How many hours do you work ? Seriously they aren't going to pay full time childcare if you are working just a few hours. Why do the kids need to go to after school childcare if working so few hours? Is it work that cannot be done in school time?

Babyroobs · 29/02/2020 19:48

£276 a week childcare for earning £115 per week wages will be disparity they are querying to be honest. They will allow for some travel time etc .

nannynick · 29/02/2020 21:18

I wonder if they are not taking account of your pay correctly. Your dividend payment is about £250 per week. Maybe they are expecting more to be going through PAYE.
Talk to them to find out the issue and then see if your accountant can change how you take drawings from your business to resolve the problem if it is related to income.

Original poster
marie201 · 29/02/2020 21:22

I'm self employed so I earn £115 p/w plus £7k p/a so approx a further £135 p/w + CA and to claim CA I need to spend 35 hours p/w caring for him so I 'work' a lot more than a standard 40 hour week.

She does 2 full days and 3 half days.

As my husband is disabled I was (or used to be able) to put the children into childcare to allow me to care for him.

OP posts:
Babyroobs · 01/03/2020 00:34

Is the dividend payment not counted in any way towards the £123 earnings threshold for carers allowance ??

ThisMustBeMyDream · 01/03/2020 00:40

It just sounds like they want to clarify something from the recent check.

It sounds fairly simple, and nothing to worry about from the wording of the letter.

Totallycluelessoverhere · 01/03/2020 06:37

I might be mistaken but I though a dividend is income so that takes you considerably over the earnings threshold for carers allowance. Have you checked wether you are still entitled to carers allowance?
Carers allowance isn’t just about caring for over 35 hours a week.

Totallycluelessoverhere · 01/03/2020 06:43

If the dividends mean you are not entitled to claim carers allowance then you might need to meet the 16 hours a week working hours rule in order to qualify for any help with childcare. Or you need to take a smaller dividend to put yourself back under the earnings threshold for carers allowance or pay some of the income into a pension.
It is a lot of childcare expenditure for someone earning so little though but as a carer myself I do understand that the needs of the cared for person might mean you need a lot of childcare.

Original poster
marie201 · 01/03/2020 07:50

Ummmm when I applied for CA I put all of my income down Inc dividends so I don't know but I shall give them a call and check.

OP posts:
SouthWestmom · 01/03/2020 08:59

I suspect the accountant set it up as income under the CA threshold and dividends to protect the CA.

I don't know about the childcare I know you can claim up to half as an expense while you work but that's probably not the case if you claim tax credits/UC as well?

dennisdonut · 01/03/2020 09:10

Income from dividends is counted as income from capital, not earnings so doesn’t count towards the carers allowance threshold.

I suspect they are querying the amount of childcare required as 115 per week is roughly 14 hours at minimum wage so all you would need childcare for.

MyDcAreMarvel · 01/03/2020 17:48

everyone is reading too much into this, these checks are completely random and generated by the computer. It has nothing to do with your earnings. With tax credits you can claim childcare for days you don’t work.

MyDcAreMarvel · 01/03/2020 17:49

Sorry ignore me I didn’t read that the letter was specific to Rose.

LittleDragonGirl · 01/03/2020 17:56

But if the op is caring for her DH then on 'paper' almost full time childcare does make sense and is necessary

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