WORKING TAX CREDIT AND HELP WITH CHILDCARE COSTS. If you are a working parent, you could be entitled to money from the government to help you pay for childcare.

There is a new form of financial help called the Working Tax Credit, for low to middle income families, with extra help for childcare called the childcare tax credit element.

Who can get help? Working Tax Credit is for people who:

• are employed or self-employed (either on their own or in a partnership),
  who usually work 16 hours or more a week
• are paid for that work, and
• expect to work for at least 4 weeks

And who are

• aged 16 or over and responsible for at least one child, or
• aged 16 or over and disabled, or
• aged 25 or over and usually work at least 30 hours a week.
  

What about help with childcare?

If you spend money on childcare while you work and you qualify for the Working Tax Credit, you could be entitled to help with the costs of the childcare. This is called the childcare tax credit element.

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

• Are you applying for Working Tax Credit,
• Are you a lone parent working 16 or more hours per week; OR in a couple
  where you both work 16 or more hours per week
• OR in a couple where one partner receives a disability benefit
  and the other works 16 hours or more per week?

Are you using any of the following forms of childcare?

• a childminder (registered with the Ofsted)
• a nursery or playgroup (registered with Ofsted)
• an after school club or holiday playscheme (registered,
• approved or on school premises)
• an approved Home Childcarer (approved by Ofsted)
• is your child 15 or under (or 16 or under if disabled)?

If you can answer YES to any of these – you could apply for childcare tax credit element as part of your Working Tax Credit.

Childcare provided by a family member is not eligible for the childcare element of the Working Tax Credit. If your childcarer is not registered as a childminder, then you may want to encourage him or her to become registered.

How much will I get?

The amount you could get depends on:

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

How is the childcare element of the Working Tax Credit worked out?

The Inland Revenue will pay up to 70% of your eligible childcare costs – this means they take into account £135 for one child and could pay up to a maximum of £94.50 per week. They take into account £200, for two or more children and could pay you up to a maximum
of £140 per week.

How will I be paid?

Working Tax Credit is being operated by the Inland Revenue. You can choose to have your money paid:

• into your bank account by Automatic Credit Transfer
• into your Post Office account
• by giro cheque
  

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 300 3900
  (open Sunday to Saturday.8am–8pm)
• local welfare advisers
• your New Deal advisor at your local Jobcentre Plus Office
  

Finding out more

To find out more, you can:

• pick up a leaflet from your Post Office
• check the Inland Revenue website: www.inlandrevenue.gov.uk/taxcredits
• ask for information in your Jobcentre Plus Office, or Tax Enquiry Centre
• Telephone the New Deal for Lone Parents freephone on 0800 868 868.