Child tax credit and childcare vouchers

When you are to have a baby it’s essential for you to get enough information on all the benefits you can claim, including the Child tax credit, which is not exactly a benefit per se, but it’s still regarded as one, due to the extra-long payback deadline. Let’s see how all the other benefits and childcare vouchers can affect each other.

What is a childcare voucher?

Childcare voucher is an extra help mothers-to-be receive from their employer. It’s considered as part of the income however this means that it has an effect on the sum of the tax credits you receive. Of course the exact sum you are to get always depends on your own circumstances, but the online calculator can help you get a closer look on what you need to count with and what questions count the most, when it comes to the tax credits. Note, that you can be eligible for working tax credit regardless of the child tax credit you are to receive however working tax credit may have a shorter deadline (generally 39 weeks).

In order for you to use the online calculator you must ensure you hold the following:

• Your income papers ( and your legal partner’s income papers if you live with him/her) for the current year and last year

• Weekly childcare costs

• The amount of childcare vouchers or payments paid by a childcare provider via your employer

• The exact start date of the vouchers/payments. Any other childcare related payments should be treated similarly.

Note there there are lots of other childcare benefits which are available for everyone to opt for and Child Tax is only one of these. Should you need more information on your possibilities please call the Child Tax Helpline for more detailed information.

When can you claim Child Tax credit?

Note that you can only claim a child tax credit once you fulfil one of the following criteria:

• If you are aged 16 or younger and have a child

• You are under 20 years of age and you take part in an education that’s deemed eligible by the tax credit office for tax credit benefits.

There are several schools within the UK offering education for all those children who are on Child tax credit. You can get more information on the Child Tax Hotline about all these schools and other educational facilities.

It’s important to note that unlike working tax credit you don’t need to work when you obtain a child tax credit. Also, you can obtain working tax credit even if you are getting child tax credit given that you have the paperwork to confirm your employed status.

The most important criteria when obtaining a child tax credit is to a parent or legal adopter of a child. Several different rules however may apply when it comes to different living conditions (raising the child alone or with a partner etc.).

Child tax credit will be paid in one sum every month. Note that most people cannot obtain a child tax credit but can obtain a Universal Credit in place that is to replace the whole tax credit system. It’s also good to know that for children who were born after 6th April 2017 no „child segment” will be paid only the family segment. Check out the gov.uk website for further details.