Money from the taxman
How to claim
- Call the HMRC Tax Credit Helpline on 0845 300 3900. They can confirm your eligibility, how much you will receive and send you an application form.
- If you prefer, you can find more information by logging on to www.direct.gov.uk/en/moneytaxandbenefits.
How to get help with childcare costs
The Working Tax Credit is also designed to help parents with the cost of a registered childminder, nursery, play scheme or out-of-school club. In some cases, paid care within the home may qualify.
To qualify for the Childcare element you have to be:
- a working single parent, or ‘treated as working’, for 16 hours or more a week, or
- part of a couple, both working, or ‘treated as working’, for 16 hours or more a week, or
- part of a couple, one of you being disabled and the other working for 16 hours or more a week.
If you meet these requirements, your Working Tax Credit may be increased to cover up to 80% of your weekly childcare costs, to a maximum payout of £175 a week for one child or up to £300 a week for two or more children.
If you are a working parent, you can elect to receive up to £55 a week of childcare free of tax and National Insurance, provided your employer offers childcare through an approved child-carer or provides vouchers for paying an approved child-carer. However, the value of these vouchers will be deducted from any childcare costs that are paid through Working Tax Credit. For further details, contact your local tax office or request Leaflet IR115 from HMRC at www.hmrc.gov.uk.
Q&A
"Work is so uncertain for both of us at the moment, what happens if our circumstances change?"- Susie and Max
The amount you receive is usually decided for a year at a time. However, HMRC can make adjustments at other times, and you must let them know within one month if your household circumstances change, and within one month if your childcare costs are reduced or stop. Any increase or reduction in your Working Tax Credit will then be backdated. Not telling HMRC about changes in circumstances can cause immediate cessation of payments, and a hefty reclaim bill in some circumstances.