Childcare element of Working Tax Credit

Working 16 hours or more per week?

Working Tax Credit provides financial support for those on low incomes. Extra help is available for working parents through a childcare element, to help with the cost of registered childcare. It offers up to 70 per cent towards the costs of childcare up to a maximum level of £175 per week for 1 child and £300 per week for 2 or more children.

So if you have 1 child in childcare and you pay £175 per week or more, you could receive up to a maximum of £122.50 per week and with 2 or more children in care that costs £300 or more, you could receive up to £210 per week. The actual amount you receive will depend on your income and your childcare costs.

To be eligible for the childcare element of Working Tax Credit:

• If you are single parent you must work 16 hours or more per week.
• If you are part of a couple, both you and your partner need to be in paid employment of 16 or more hours per week. However, you will also be eligible if one of you works 16 or more hours per week and the other does not work, but is in hospital, in prison, entitled to Carer's Allowance or incapacitated for childcare purposes.
• The childcare you use must be registered.

The main elements of Working Tax Credit are paid directly to whoever works in the family. However, the childcare element is paid directly to the main carer alongside Child Tax Credit payments.

For more information about the childcare element of Working Tax Credit contact the Tax Credits Helpline on 0345 300 3900 or visit: http://www.hmrc.gov.uk/.

Find out if you are eligible for the childcare element of Working Tax Credit online now.