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Thread: Tax credits. How do they work!!

how do child tax credits work

Tax credits. How do they work!!

Hello everyone!!

I am hopefully going back to work either just before christmas or in the new year. I will be working at william hill (the bookies). My hours would consist of some night work (til 10). I am intitiled to free childcare but I am very confused. My friend has said that tax credits wont pay til a month after you start work which scares me becuase I dont have the money upfront! Is there any job centre grants that can help? I dont want to miss the chance to go back to work as I love working! Also if I could find a child minder who was willing to work late would they pay even though It was late?

Join Date Oct 2007 Posts 4,937

dont worry!

Join Date Mar 2011 Posts 373

As suggested by Terri you will need to find a childminder who offers childcare for the hours you need. Some childminders are very flexible and will work evenings and some are also registered for overnight care. Ask your local Family Information Service (FIS) to provide you with a list of childminders who offer flexible childcare. You can find the contact details of your FIS by using the ‘Find your FIS) function on our website

To be eligible for the childcare element of Working Tax Credit to help with your childcare costs, you will need to be working at least 16 hours per week. To answer your question, you can get help with

your childcare costs for any hours of the day or night you are working and are using registered childcare for.

Once you have found a suitable childminder and have a start date for your job, contact HMRC on 0845 300 3900 or visit HM Revenue & Customs: Tax credits to make an application for the childcare element of Working Tax Credit. You can receive up to 70% of your maximum eligible childcare costs (which is currently Ј175 per week for one child). If you are eligible for the childcare element, and you are able to provide HMRC with details of your childcare costs and the Ofsted registration number of the childminder, the payments are usually processed quite quickly.

If you are currently receiving benefits you might be eligible for a Job Grant from Job Centre Plus which is a tax-free payment of Ј250. To qualify for the Job Grant you must have been entitled to a qualifying benefit (for example, Income Support, Jobseeker’s Allowance or Employment Support Allowance) for at least 26 weeks immediately before moving into work, and, be taking up paid work of at least 16 hours per week. You need to make sure you tell your Jobcentre Plus Office that you're starting work. You will be paid the Job Grant in the same way as you were paid your benefits. The Job Grant can be used on whatever you choose, so this may help you if your childminder requires some up-front fees.

I hope this is helpful and good luck with the new job

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