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What if I receive Tax Credits or Universal Credit or claim Tax Free Childcare?

Question:
What if I receive Tax Credits or Universal Credit or claim Tax Free Childcare?
Answer:

Some parents get help with childcare costs through the childcare element of Working Tax Credits (WTC) or Universal Credit (UC) which is paid by HMRC; this is a means tested allowance which can pay up to a maximum of 75%  85% of the childcare costs for one child.

Parents of funded 2 year olds cannot claim WTC or UC element on any of the funded hours a child receives, as these hours are already paid in full on your behalf. However, if a parent has additional charges to pay for, then parents can claim  WTC and UC on anything they pay for.

Working parents also have the option to pay into the government Tax Free Childcare scheme to help with additional costs. Go to Childcare Choices for more information and to apply.

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