Childcare costs can be a large part of a families' take home pay, which can result in parents being unable to access work because of this. However there is some financial help available towards childcare costs for working families.

LATEST UPDATE

Child Tax Credit & Working Tax Credit
These tax credits replaced Working Families Tax Credit, Disabled Persons Tax Credits and Childrens Tax Credits from April 2003.

Child Tax Credit
This provides an income related support for families with children and is paid to the main carer in the family.

Working Tax Credit
This is paid to households on low incomes with or without children. It supports these households by topping up earnings and the amount you receive depends upon individual circumstances. It is made up of a number of elements one of these being the Child Care Element. The Childcare Element of the Working Tax Credits can help with the cost of registered or approved childcare.

The childcare element can provide up to 70% of your childcare costs, up to a maximum cost of £175 a week for one child and £300 a week for two or more children, depending on your income. For example:
• For one child £122.50 a week (£175 x 70%)
• For two or more children £210 a week (£300 x 70%).

Who qualifies for the Childcare Element?
To qualify for this you must be over 16 years old and work 16 hrs or more a week.
If you are applying as a couple both of you must work 16 hours or more a week or one of you must work 16 hours a week or more and the other must be incapacitated ( in receipt of incapacity or disability benefits ) or in hospital or prison.

You must be responsible for the child you are claiming for and can claim for any child up to :
• 1st September following their 15th birthday, or
• 1st September following their 16th birthday if they are registered blind , or have been taken off the blind register within the last 28 weeks, or you receive Disability Living Allowance for the child.

What is ‘registered’ or ‘approved’ childcare?
To claim the childcare element children must be attending registered or approved childcare. Registered childcare must be registered by OFSTED under the National standards for under 8s daycare and childminding or approved to look after children in your home under the Home Childcare Scheme. For further details on registered or approved childcare visit the OFSTED website.

How do I claim?
Claim online at www.hmrc.gov.uk/taxcredits
Or to request an application pack telephone the Helpline on 0845 300 3900.