If you are a working parent and paying for childcare, which is usually costly, there is now a way for you to reduce costs. You just need to obtain tax credits. You can qualify for this type of credit, provided that you are working for a minimum of 16 hours per week or more. You may still qualify if you achieve this minimum-hour requirement prior to your adoption, sick, paternity or maternity leave. You can easily claim your benefits right after you begin paying childcare fees. The amount you may receive is proportionate to the money you actually paid.
You can get almost eighty percent of the childcare costs. However, the amount you can claim weekly is subject to maximum limit. For example, if you are paying childcare costs for one kid, the maximum fee you can declare weekly is £175. On the other hand, if you are paying for two or more kids, the weekly maximum amount you can file for is £300. Through your tax credits, the weekly maximum amount you can obtain for one child is £140 and for two or more children is £240 weekly.
Your income is also a factor in calculating the amount you may claim. If you have lower income, then you are entitled to get higher tax credits.
In order to qualify for tax credits, you must use a registered childcare like those provided by school hours organisations, nannies, foster carers, childminders and nurseries.
Tax credit approval and registration rules vary in the United Kingdom. You must ensure first that the childcare service you are using meets the guidelines before you make a claim.
There are instances where you can not claim tax credits for your childcare costs. You can not qualify if you rely on your employer, on local authority/local education authority or government for your childcare costs. But you are still entitled to childcare payments that you have paid for. For instance, if your boss pays a portion of the total amount of childcare costs and you pay the rest of it, you can still claim, but only for the amount you have paid.
The minimum-hour requirement is important to both single and married parents. If you are married, both of you must work 16 hours per week. However, this may be disregarded if you or your spouse is disable or ill seeking disability benefits, confined in hospital, or imprisoned.
In occasions like adoption, paternity, sick or maternity leave, you are only entitled to get tax credits for childcare costs prior to your leave, you work for 16 hours per week and you have been secured with maternity allowance, you are on adoption or maternity leave, or you are presently enjoying the first thirteen weeks of your additional adoption or maternity leave. Furthermore, if you are enjoying paternity leave, you can claim the childcare assistance benefit for the two weeks of your leave. In case of sick leave, you can only make a claim if the period of your leave is 28 weeks or less, and you are secured with one of any state benefits such as National Insurance Credits and Employment and Support Allowance.
|
