Child Tax Credit and the childcare element of the Working Tax Credit

Child Tax Credit and the childcare element of Working Tax Credit

Tax credits can help families with children or those who need help paying for childcare. Nine out of ten families with children are eligible for the new tax credits. Child Tax Credit is paid into the bank account of the main carer - the person who is mainly responsible for looking after the children. Families on incomes of up to £58,000 a year (or £66,000 a year if there is at least one child who is less than a year old) can benefit from the new Child Tax Credit whether they are working or not. This money acknowledges and supports the costs of bringing up children.

Childcare element of Working Tax Credit

Working Tax Credit is an in-work tax credit for families, and includes an element to support the costs of registered or approved childcare for working parents. To qualify for support, the childcare must be:

Registered childcare provision including: childminders, nurseries, playgroups and play schemes.
Out of hours clubs on school premises run by a school, local authority or approved body.
Approved foster carers (but only if the child is not fostered by the foster carer).
Nursery nurses from a registered agency.

To apply for the childcare element of the Working Tax Credit

Lone parents must work at least 16 hours a week.
Both members of a couple must work 16 hours a week or more.
Or one member of a couple must work 16 hours a week or more and the other member must be incapacitated.

The childcare element can help with up to 80% of your eligible childcare costs:

For one child, the maximum you can claim is £175 per week.
For two or more children, the maximum is £300 per week.

The childcare element of the working tax credit will be paid into the bank account of the main carer alongside the child tax credit.

Contacts and resources

The tax credit helpline helps parents to complete their claim form or check the progress of their claim. You can call the helpline on 0845 300 3900 (local call rate) 8.00am-8.00pm seven days a week (except Christmas Day, Boxing Day & Easter Sunday). For people with hearing or speech difficulties please call 0845 300 3909.

Parents can also apply online and follow a simple guide to see if you are eligible at the Inland Revenue Tax Credits website.