Tax Credits : Working Out Your Child Care Costs
Child care cost calculator
Child care cost calculator helps you in calculating the child care cost as it gives you an idea or an estimate of how much money you should keep aside for care of your child. You can easily do budgeting and planning with the help of child care calculator. The cost of children leties in UK depending on the type of childcare & your location too. Child care costs are high in UK and it is not surprising that many families find it difficult to manage these costs and they have to adjust their budgets accordingly. You might be able to get help –
- From your employer in the form of direct payment for childcare or childcare vouchers.
- From the govt. in the form of tax free childcare scheme, working tax credit or the universal credit.
Tax credits: working out your childcare costs
Calculation of Child care costs calculator
You must know all these things about child care costs before calculating it–
- The childcare must be approved or registered. It should not be provided by a close relative if it is being provided in your home.
- Child care costs can be included until the week of 1 September after children’s reached the age of 15. In the case of blind or disability allowance or personal independence payment, the age is 16 years.
- The maximum childcare costs taken into account are as follows – a) For one child, child care cost is £175 a week. b) For more than one child, it is £300 a week.
- The maximum child care help provided is 70% of the maximum childcare cost or 70% of what you pay – whichever is lower. It means the maximum help you can get is £122.50 a week for one child and £210 for two or more children’s. You may get fewer amounts than this because tax credits are reduced by your income.
- You can get 30 hours of free childcare immediately by claiming tax credits or childcare vouchers.
If you are eligible, you can also claim extra tax credits to help with childcare costs. You can make your claim 7 days before you start paying for children. You may not receive the tax credits if you will provide the wrong amount. If you already claim the tax credits for childcare costs and your child costs have been changed, this calculator will helps you to work out if there is any need to report change to the tax credit office or not.
The things which you cannot include in your child care calculation are as follows-
- Childcare payments or grants from a govt. scheme
- Childcare payments in the form of money or child care vouchers.
- Childcare vouchers in return from the employer by doing reduction in your pay.
- Childcare costs paid by educational or local authority
Note – Kindly inform tax credit department, if your child care costs stop or change by an average of £10 or more.
Whether you are Confused in planning your child care cost? Whether you want a proper estimate of your child care cost? Use this DNS calculator to find out how much child care cost you can claim?