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Child and Working Tax Credit.
Tax credits are payments from the government. If you're responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit. If you work, but earn low wages, you may qualify for Working Tax Credit. Payments are usually made directly to your bank account.
How do they help with childcare costs - do you qualify?
If you work and pay for childcare you may be able to get tax credits to help with the costs. You have to work for at least 16 hours a week to qualify.
How much can you get?
You can get up to 80 per cent of what you pay in childcare, to a maximum of:
- £175 per week for one child
- £300 per week for two or more children
The amount you get depends on your income. The lower your income, the more tax credits you can get.
For more information on eligibility and how to claim tax credits, contact the Inland Revenue on 0845 300 3900 or visit there website www.hmrc.gov.uk/taxcredits/
What are Childcare Vouchers?
Childcare vouchers are a tax efficient way of paying for your childcare regardless of the age of your child. Your employer pays a childcare voucher company an agreed set amount of your salary, who in turn pass this to the Nursery. You do not have to pay tax or national insurance contribution?s (NIC?s) on the first £55 per week, or £243 per month.
Over the course of a year this could result in a saving of £1196.00 per parent in tax and NIC.
Employers are not required by law to provide employer-supported childcare to their employees. The decision to do so, and the type of employer-supported childcare provided, is up to your employer. If your employer doesn?t currently offer employer-supported childcare they may find it useful to visit www.hmrc.gov.uk/childcare for more information.
If your employer does not have a preferred Childcare Voucher partner, then we can give you the names of companies to try or you can visit the Inland Revenue website for more information www.hmrc.gov.uk/childcare.