Tax credits and 30 free hours question

[GlummyMcGlummerson]

I posted this in chat first but probably more appropriate here!

My DS has been in a nursery since January but wasn't eligible for 30 free hours until April, so I've been paying £90pw from January-April. I applied for the 30 free hours code in March, and only got it today.

So lockdown happened and he hasn't been at nursery until now, but they can still claim the free hours back from the government, so I said I'd send the code once it came through. I'm paying £30 per week now as I have wraparound care.

Anyway, last month I renewed my tax credits and put that I was paying £30pw for childcare to reflect the reduction I get due to the free hours. My tax credits were obviously reduced.

I'm now worried that when the nursery claim the code that HMRC will think that the 30 free hours means I'm no longer paying £30pw, because the code came after the rate change IYSWIM. Are the two linked - will it trigger a change in my award? I know I can set them straight but getting through to tax credits right now is a massive ball ache I don't have time for and I don't want them to stop my payments

Do you mean you are paying £30 which is for the hours in excess of the 30 free?

Sorry if this doesn't help but when my son was eligible for the free hours, it never worked as easily as I felt it should. We required 35 hours childcare a week, however the way his nursery worked was you either took a 5 hour or 10 hour slot. So say he was only in childcare for 7 hours they were still due 10 hours payment. I couldn't find childcare that i could utilise the hours as we needed them.
So my childcare element from TC was just the part I was paying only.

I would have thought they can only access your code and get payment from the date you have given it them. Also if has only recently been sent to you so make sure you keep a note of the date when. However it may be able to backdated. I don't know but would check as it could look like you've not been paying £30 and bite you on the bum with TC so make sure you keep receipts and proof of the payments.

I hope I've made sense. Sorry if I've missed your point though

Do you mean you are paying £30 which is for the hours in excess of the 30 free?

Yes, for wraparound care. It's the part I'm paying out my own pocket.

God that sounds a pain, I've heard all sorts of stories about how different providers operate. Because he's only just gone back I haven't had a non-lockdown bill yet. I'm sure it will be as confusing as ever though it's my own fault for leaving til March to apply for a code really

I more wondered if the 30-hour code system is automatically linked with tax credits, and redeeming a code automatically triggered a tax credit change. I honestly can't remember with my daughter and hers!

I think there will be a link somewhere however you are only claiming for the part you are paying for, so I wouldn't worry. No questions were ever asked when i used the free hours for my DS. I was told to only declare what I am paying out my pocket.

I know they can audit, the one year I was called for audit regarding childcare costs so just make sure you keep receipts and bank statements etc as it makes it easier for you.

The Nursery should still be giving you receipts for the part you are paying so I wouldn't worry about it looking to tax credits like your free hours are covering your costs and you aren't paying at all.

Tax credits are really long winded aren't they and can be quite scary as they can land you in mess. I personally hate being on them but I would be in much more or a mess not having them. They've been a lifeline for us

Thanks Spidey yes they are a total PITA I think I'm one of the few who'd rather be on UC, but really can't be doing with the headache of switching over.