Quote:
Originally Posted by harwood red
Just to clarify what westender has said
you can claim 80% of your childcare fees to be deducted from your income before working out your award of tax credits
just thought I would make that clear as it made it sound like you would get 80% of your fees paid!!
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Childcare fees are not deducted from the claimant's income. If they were, you would, in effect, be given credit for the full amount of fees paid.
Part of my job was to recalculate Tax Credits where there was an incorrectly awarded amount in payment. In a Tax Credit calculation the income is used as the basis then award elements are given (basic WTC, 30 hour element, number of children etc.). The childcare element is actually given on a daily basis, through the year, at a rate dependent on the weekly amount shown in the claim, and is capped at 80% of the amount verified as paid but is subject to tapering, depending on income, periods of non-employment etc. The amount of the award includes the 80% fees claimed, subject to tapering.