Tax Credits - no childcare costs in term time but in holidays - how does it work?

[HappyMumof2]

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Your tax credit award is based on 2 elements:

1. combined salary if you both work over 16hrs/wk
2. weekly childcare cost

If you go back to work for the hrs your state, and your partner also works over 16hrs per week, plus your total household income is approx 60K or below (i.e. most people!!) you will get an award based on your combined household income.

The additional award for childcare costs only applies if you're paying over a certain amount per week for childcare (I think it's about £90?). As I was only paying for 2 days' nursery per week for DS (before I went on maternity leave in June), I wasn't qualifying for the childcare cost element, so the only amount I received was based on our joint income.

Therefore, as you will only be paying childcare during the school holidays, although it's worth declaring the approx total you pay over a year, I doubt you will receive anything as, averaged over a year, this will be below the £90 per week threshold.

The only other thing I can suggest is to ask your employer whether they do childcare vouchers to help with your holiday care costs as these will be free of income tax and NI i.e. you will pay less compared to paying for care in cash.

Sorry it's a bit long winded but hope this helps!!

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I don't think there is a £90 threshold

I think you get 80% of your childcare if you are earning below a certain limit

Between 80% and nothing for the next band and nothing after that

But I could be wrong have a look at "entitledto" which is a website (you'll have to google for it)

Apologies for the duff info re £90pw threshold (blame hormones and sleep depravation due to 16wk old DD!)

Still think the cost is averaged over a year tho. Would check out Katymac's website...

Good luck!

entitledto.co.uk

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I would guess as a single Mum working part time your income will be fairly limited so you would definitely get the first element. Unless you are really earning over 60K for part time in which case I am and let me know what you do!

The childcare element is more complicated. But I think you have to average it out. Obviously lots of people are affected by school hols. I pay £10.50/day for DS in termtime and £31/day in the hols.

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I think you would still. The main thing is to keep your weekly hours up to 16 (not including your annual leave entitlement of course). Then average out your childcare which you say will be £150/week for the school hols. The school hols are 13 weeks. But say you only need 12 weeks of childcare (you will probably be on holiday yourself at least one week) that is 1800 per year. So then I would divide that up by 52 and say that your average childcare is £34.61/week.

If you are on such a low wage I would guess that you would get 80% of that value - so £110.77 (34.6140.8) paid every four weeks. In addition to the other tax credit element. It would be just up to you to put the money aside for when it is the holidays.

times the holiday figure by 13 - then divide by 12 to get a monthly figure (or by 52 to get a weekly figure)

You see Bozza is a genius (her figures are lovely)

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I never had to get anyone to sign when I filled mine in. I just had to put down the average. Never got any payment, mind you, but that is because we have always been quite a bit over the threshhold for the child care element rather than because I did it wrong.

Actually the figures I worked on might be slightly high because I would have thought you would take more than one weeks hols during the school hols.

I did fill in the details about my childcarers. Maybe it wasn't followed up because I wasn't entitled.

You need to give them the registered number

If you say you are using someone then don't they ring up & check

I had a phone call last week asking how much & for which weeks a child was coming

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I don't think the childcarer has to sign, but you do need to fill in who you are using and give a phone no.

happymum, why are you giving up c/minding?

it gets much easier when your own kids start school, believe me!

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I completely agree with you, I only mind part time and couldn't take the crap that comes with it full time. I really admire anyone who can, but it's not for me in the long run either!

ssd x x

p.s. it's just getting something else that fits in with the kids/money isn't it.