Working Tax Credit and Claiming the Costs of Childcare

If you work and you pay for the costs of childcare, you may be able to get additional financial help.  This is thanks to the childcare element of Working Tax Credit.

Our guide looks at who can claim, when to claim and what childcare you can claim for.

Who can claim the costs of childcare?

There are several types of people who can claim the costs of childcare.  These include:

• Single parents – if you work over 16 hours per week
• Couples – if you both work over 16 hours per week, or if one of you works over 16 hours per week and the other is ill, disabled, a patient in hospital or in prison
• People on maternity or paternity leave – if you were working at least 16 hours per week before this leave began and you are on normal maternity/paternity leave
• People who are off sick – as long as you’re off sick for under 28 weeks, were working at least 16 hours per week before your sickness and you are claiming one of a range of benefits (including statutory sick pay)

When should you claim the costs of childcare?

You can make a claim as soon as you start using childcare or no more than seven days before the childcare starts.  You should claim within three months of starting paying for childcare as costs cannot be backdated before this.

You can claim the costs of childcare for any child up to the Saturday following the 1^st September after their 15^th birthday.

What counts as ‘approved childcare’?

To claim the costs of childcare, the childcare provider must be registered and approved.  For example, if you use a childminder, nursery, play scheme or childcare club, they should be registered with Ofsted (in England).  There are different registration requirements in Wales, Scotland and Northern Ireland.

What can’t you claim for?

There are several reasons you may not be able to claim the costs of childcare.

Firstly, you cannot claim the amount you receive from your employer towards childcare costs (for example if you use ‘nursery vouchers’) or any costs that are met by your local authority.

However, if you pay part of the cost yourself, you can claim this element.

In addition, you cannot normally claim for childcare costs if a relative looks after your child, even if they are approved or registered.  The exception is where the relative is a registered childminder who cares for your child outside the child’s own home.