Paying for Childcare - Help for Working Parents
Child Tax Credit and the childcare element of Working Tax Credit
Tax credits can help families with children or those who need help paying for childcare. Nine out of ten families with children are eligible for the new tax credits. Child Tax Credit is paid into the bank account of the main carer - the person who is mainly responsible for looking after the children. Families on incomes of up to £58,000 a year (or £66,000 a year if there is at least one child who is less than a year old) can benefit from the new Child Tax Credit whether or not they are working. This money acknowledges and supports the costs of bringing up children.
Childcare element of Working Tax Credit
Working Tax Credit is an in-work tax credit for families, and includes an element to support the costs of registered or approved childcare for working parents.
To qualify for support, the childcare must be:
- Registered childminders, nurseries, playschemes or out of school clubs
- Schools or other establishments that are exempt from registration
- Providers of childcare for children aged eight or over, who are approved by accredited organisations
- Approved home carers.
To apply for the childcare element of Working Tax Credit:
- Lone parents must work at least 16 hours a week
- Both members of a couple must work 16 hours a week or more
- Or one member of a couple must work 16 hours a week or more and the other member must be incapacitated.
The childcare element will pay up to 80% of eligible childcare costs up to a maximum of:
- £140 (80% of £175) per week for one child, and
- £240 (80% of £300) per week for two or more children.
The childcare element of Working Tax Credit will be paid into the bank account of the main carer alongside the Child Tax Credit.
Contact and resources:
Download a local information booklet about Tax Credits.
Helplines
The Tax Credit helpline provides information can help parents to complete their claim form or check the progress of their claim.
8.00am - 8.00pm everyday (except Christmas Day, Boxing Day, New Years Day and Easter Sunday)England, Scotland and Wales 0845 300 3900
For people with hearing or speech difficulties
England, Scotland and Wales 0845 300 3909
Websites
Parents can apply online and follow a simple guide to see if they are eligible. Inland Revenue -Tax Credits
The Daycare Trust website, www.payingforchildcare.org.uk is also a really great resource to look at.
The independent website run by Martin Lewis, the finance expert, also has some really useful informatino on it: http://www.moneysavingexpert.com/health/childcare-costs
