Tax Credits You may be eligible for help with childcare costs through tax credits. Child Tax Credit You may be eligible for this whether you are working or not. Families with incomes up to £58,000 (or £66,000 if there is at least one child under a year old) could still be eligible for help. Families could receive support for each child in the family and, if you have a baby under one year old or your child has a disability, you can receive extra help. Child Tax Credit is paid directly into the bank account of the main carer. Working Tax Credit This provides a top-up to wages for those on a low income. Extra support is available for working parents and disabled people in work. Payment of working tax credit is made directly from HM Revenue and Customs. The Childcare Element of Tax Credits supports working parents with the cost of registered or approved childcare. You can only get this if you are working at least 16 hours a week (and providing you are eligible to claim Working Tax Credit). If you are part of a couple, both you and your partner must each work at least 16 hours, unless one of you is prevented from working by incapacity. It can pay up to 80 % of childcare costs up to a limit of £175 per week for one child and up to £300 per week for two or more children. So if you have one child in childcare you could receive up to £140 per week towards registered or approved childcare costs. With two or more children in childcare you could receive up to £240 per week. Childcare Vouchers versus Tax Credits Another way of saving on registered childcare costs is with childcare vouchers through your employer. Childcare Vouchers are a different scheme to tax credits but may affect your tax credits. To find out if you are better with childcare vouchers or tax credits: CLICK HERE For more information on HMRC helpline on 0845 603 2000 or visit www.inlandrevenue.gov.uk/taxcredits
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