Tax credits
How much of the Childcare element of the Working Tax Credit you
are entitled to depends on how much you earn and how many hours you
work, although even families with an income of up to around £62,000
can get some tax credit help, so it is well worth calling HM
Revenue and Customs on 0845 300 3900 or visiting www.hmrc.gov.uk (external
link) to find out if you can get help.
If you are eligible, you might be able to qualify for the
childcare element of Working Tax Credit. You need to be using
registered or approved childcare but, if you are, the childcare
element can help with up to 80 per cent of your eligible childcare
costs up to a set limit.
Only childcare provided by registered or approved childcarers is
eligible for the tax credit. Registered or approved means:
- a childminder registered with Ofsted in England or the CSSIW in
Wales
- an over-7s childminder registered on the voluntary part of the
Ofsted Childcare Register in England or the Childcare Approval
Scheme in Wales
- a nanny registered on the voluntary part of the Ofsted
Childcare Register or the Childcare Approval Scheme in Wales.
You cannot claim the childcare element of Working Tax Credit if
the childcare you are using is provided by a relative of the child,
even if that relative is registered or approved. A relative of the
child means a parent, grandparent, aunt, uncle, brother or sister
whether by blood, half-blood, marriage or affinity.
The exception to this is when your child is cared for by a
relative who is either:
- a registered childminder who cares for your child outside
of your child's own home
- a childcare provider, approved under a Home Child Care
Providers Scheme in Wales or Northern Ireland, who cares for your
child outside of your child's own home, but they must also care for
at least one other child who's not related to them.
Visit www.hmrc.gov.uk/childcare
(external link) for more information about tax credits, and to
apply online.