Tax Credits (Childcare Element) Who can qualify? You’re a lone parent You must work 16 hours or more a week to claim help with childcare costs. You’re part of a couple Generally you and your partner must both work 16 hours or more a week to claim help. Only one of you has to work 16 hours or more if the other is: * ill or disabled and claiming disability benefits * in hospital * in prison – serving a custodial sentence or remanded in custody awaiting trial or sentence How much help you can get? You can get help with up to 70 per cent of your childcare costs – up to certain limits. If you pay childcare for: one child, the maximum * childcare cost you can claim is £175 a week *two or more children, the maximum cost you can claim is £300 a week This means that the maximum help you can get for your childcare is: £122.50 a week for one child or £210 a week for two or more children But you won’t necessarily get the full £122.50 or £210 a week – the actual amount you get will depend on your income. The lower your income, the more tax credits you can get. What income limits apply? There is no set income limit for help with childcare costs. A couple with one child, paying £175 a week for childcare, will still get some tax credits with an annual income as high as £41,000. But this is only a very general guide. It’s important to know that: · different income limits apply depending on your circumstances – for example if you have a large family the income limit could be higher · you need to make a claim to get a definite answer to how much you are entitled to
For more details give the Tax office Helpline a call on 0345 300 3900
IF YOU ARE ABLE TO CLAIM – THEN CLAIM IT!
Childcare Vouchers SAVE UPTO £1,866 PER YEAR (FOR A COUPLE)
If your employer has joined a childcare voucher scheme, all eligible working parents can exchange up to £243† a month (£55† a week) of their gross salary for childcare vouchers. The exchanged part of the salary is exempt from tax and National Insurance contributions. This allows parents to make savings of up to £933* a parent, a year on their registered childcare costs. How it works? Your employer takes up to £243 per month from your wage (this is done before any deductions have been made – i.e. Tax and National Insurance). They then pay us for your childcare. If your childcare costs are above £243 then they can pay the remainder, but this will not have the Tax Break (you will still be deducted Tax and National Insurance for anything above £243). If you are a couple then you both can use vouchers (£486) and that’s saving you £1,866 per year. Please note that the above figures are for households earning less that £41,000.
ASK YOUR EMPLOYER IF THEY DO VOUCHERS – SAVE MONEY NOW For more details please come in and see me (Tuesdays and Thursdays) or drop me an email at firstname.lastname@example.org