Who is eligible?
If you work at least 16 hours a week and pay for childcare then you may be entitled to additional tax credits to help with the costs. If you are a single parent then you must work at least 16 hours a week, and if you are part of a couple you must both work 16 hours or more a week in order to qualify.
Only one of you has to work 16 hours or more if your partner is:
- ill or disabled and claiming disability benefits
- in hospital
- in prison – serving a custodial sentence or remanded in custody awaiting
trial or sentence
If you are on maternity, paternity or adoption leave for 39 weeks or less, and you were working 16 hours or more before going on leave, then you may also be entitled to claim for childcare costs. However if you do not return to work after the 39 weeks then you will no longer qualify, and you will need to inform HM Revenue & Customs.
You are also able to claim for help with childcare costs for the two weeks you are on paternity leave for. If you are off sick then you can also claim help with childcare costs, providing you are off sick for 28 weeks or less and that you had been working for at least 16 hours a week
before you left. It is important to let HMRC know if you do not return to work after 28 weeks, as you will no longer be eligible for chidlcare credit.
How much can I 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.
What type of childcare qualifies?
In order to claim you must be using registered or approved chidlcare, provided by either of the following:
- a childminder, nursery, play scheme or a club that is registered or
approved - a school, out of school hours and on school premises
- a care worker or nurse from an agency
- an approved foster carer
How do I know if my childcare provider is registered or approved?
In order to confirm that your childcare provider is registered or approved you must check with either of the following, depending on where you live, and ask to see their registration certificate:
- Ofsted in England
- the Care Standards Inspectorate for Wales
- the Scottish Commission for the Regulation of Care
- a Health and Social Services Board or Trust in Northern Ireland
If you require further information about what is meant by approved and
registered childcare, visit the HM Revenue & Customs website.
What if my child is looked after by a relative?
In general you cannot claim tax credits for childcare provided by relatives
even if they are registered or approved. The only exceptions to this rule
is when your child is being cared for by a relative who is either:
- a registered or approved childminder caring for your child outside
of the child’s own home, or - a childcare provider, approved under a Home Child Care Providers Scheme
in England, Wales and Northern Ireland, caring for your child outside
of the child’s own home and they also care for at least one other child
who is not related to them
Childcare vouchers
You cannot claim for childcare costs that:
- you pay with vouchers your employer gives you towards the cost of
your childcare - your employer pays
- your local education authority pays as funded pre-school sessions
If your employer offers you childcare vouchers and you want to know whether you would be better off accepting them or claiming for help through tax credits then you can use the calculator on the HMRC website to give you a rough idea.
How do I claim childcare costs?
You can only claim help with childcare costs if you have already arranged your childcare – you cannot claim in advance. If you are making a new claim then you will need to fill in page four of the tax credits claim form.
If you are already receiving tax credits, then your circumstances may have changed to enable you to claim for help with childcare costs. For example you may:
- return to work and start paying for childcare
- change your childcare provider to one that’s approved or registered
If this is the case then you will need to get in touch with HMRC.
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