Frequently Asked Questions

Working families tax credit, disabled person's tax credit and childcare tax credit

The list below provides answers to the most common questions of parents and carers looking for help with paying for childcare.

• Who can get help?
• What about help with childcare?
• How much will I get?
• How is childcare tax credit worked out?
• How will I be paid?
• How can I find out exactly how much I am entitled to?
• Finding out more

Who can get help?

Check here to see if you could get Working Families' Tax Credit:

• Are you a lone parent, or in a couple with a child living with you?
• Are you working 16 hours per week or more? - for couples, one partner must be working 16 hours or more each week
• Are you resident in the UK and entitled to work here?
• Do you have savings of £8000 or less?
• If you can answer YES to all these questions you could be entitled to Working Families' Tax Credit.

What about help with childcare?

If you spend money on childcare while you work, and you qualify for Working Families Tax Credit or Disabled Person's Tax Credit, you could be entitled to help with the costs of the childcare. This is called Childcare Tax Credit.

Check here to see if you could claim childcare tax credit:

• Are you applying for Working Families' Tax Credit, or Disabled Persons' Tax Credit?
• Are you a lone parent working 16 or more hours per week
• OR a couple both working 16 or more hours per week
• OR a couple with one partner receiving disability benefits?
• Are you using one of the following forms of childcare for your child?
• Childminder (registered with your local authority)
• Nursery or playgroup (registered with your local authority)
• After school club or holiday play scheme (registered, approved or on school premises)
• Is your child 15 or under (or 16 or under if disabled)?

If you can answer YES to all these questions then find out more - you could apply for childcare tax credit as part of your Working Families' Tax Credit or Disabled Person's Tax Credit.

Childcare provided by nannies and family members is not eligible for the childcare tax credit. If your carer is not registered as a childminder, then you may want to encourage him or her to become registered.

How much will I get?

Childcare tax credit is part of Working Families' Tax Credit. The amount you get depends on:

• How much you spend on registered childcare
• The number of children under 15 (or 16 if a child is disabled) using registered childcare
• How much you earn

How is childcare tax credit worked out?

The Inland Revenue will take into account up to £135 to be spent on childcare per week for one child in childcare or up to £200 to be spent on childcare per week for two or more children in childcare. The maximum you can receive is up to 70% of the amount you spend on childcare.

How will I be paid?

The Inland Revenue is operating Working Families' Tax Credit. Your money will be paid:

• Into your bank account by Automatic Credit Transfer
• Or by Order Book
• Or by giro cheque

After April 2000, most people will be paid directly by their employers with their wages. The Inland Revenue will make sure the right amounts are paid on time.

How can I find out exactly how much I am entitled to?

Most parents need to know exactly what to expect when they are making decisions about work, wages and their family. You will also need to know exactly what changes there could be to any other benefits you receive, like Housing Benefit.

You can ask for help from:

• The Inland Revenue Tax Credits helpline on 0845 609 5000 (open Mondays to Friday 7.30am to 8pm Friday 7.30am to 7pm Saturday and Sunday 10am to 4pm)
• Local welfare advisers
• Your local Benefits Agency
• Your New Deal advisor at a Jobcentre

Finding out more

To find out more, you can:

• Pick up a leaflet from your Post Office
• Check the Inland Revenue website
• Ask for information in your Jobcentre, Benefits Agency or Tax Enquiry Centre

Back to Paying for Childcare

Wednesday, 8 October, 2008

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