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Childcare costs - Tax credits.

6 replies

VictorianSqualor · 29/01/2009 22:12

Does anyone know what happens if you start work before the new tax year if you are already claiming tax credits?

Basically, we are entitled to CTC atm, we will still be entitled to CTC next year as they are based on 2008/2009 earnings. We will not receive any (or very little) in 2010 (based on earnings 2009/2010)

So, if I went back to work next month and had childcare costs of £680 per month would I be able to claim this from the moment I started working? Would this affect my claim for April (i.e next year's tax credits) or would they just use DP's 2008/2009 earnings plus anything I had earned between now and April?

Thanks.

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snigger · 30/01/2009 07:16

If you return to work during February, your earnings from Feb to Apr 5 will be including in the income you have to declare for 2008/09, however provided both you and your DH are working 16hrs/wk or more you may receive help with childcare costs - dependant on income.

If it's only two months income it's unlikely to have a huge impact - it's well worth adding your childcare costs onto the claim though, as they are taken into account during calculation of your overall entitlement.

VictorianSqualor · 30/01/2009 09:15

I thought as much.
Any idea if I could start claiming the Childcare as soon as I start work or if I have to wait for the new tax year?
I am trying to call them and check but they are constantly engaged.

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snigger · 30/01/2009 09:22

We're getting end to end 2002/2003 tax code queries and final figures for 07/08 just now - you should get through after the 1st Feb!

Effective from the date you and your partner are both working 16 hours or more per week you are eligible to claim childcare - you can add the childcare as long as the arrangement has begun or is within 7 days of beginning.

You'll need your cc providers name, address, post code, registration number, and the body with whom they're registered, along with the average weekly costs (calculate what you'll pay over a normal 52 week period, if your costs are going to vary, and then divide by 52. Include holiday clubs etc if they're with the same provider - if you'll be using another provider for that, get their details too and add that separately.)

VictorianSqualor · 30/01/2009 09:55

Thanks

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HappyMummyOfOne · 31/01/2009 09:20

Help with childcare costs is capped far lower than CTC limits - ie with one childcare and joint earnings of £26k there is no help with childcare yet you would still qualify for basic tax credits of £42 a month.

Depends on your joint earnings, the online calculator on their site would give you an indication and you can call to ask if you qualify.

VictorianSqualor · 01/02/2009 14:10

We have three children so higher threshold, plus I haven't been working this year and DP was on a lower wage for most of it, so based on 2008/2009 we are (According to entitledto) in the threshold for help with childcare, just depends on how they will calculate it.

Am still trying to get through

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