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Coronavirus: Tax Credits - Help with Childcare Costs
Tax Credits - Help with Childcare Costs
If you claim help towards your approved childcare costs through Working Tax Credit (WTC) then your award will include a Childcare Element.

Although normally paid to the main carer alongside Child Tax Credit (CTC), it is actually part of WTC and therefore has various work conditions attached to it.

Workers continuing to work their normal hours (or more) will continue to be entitled to help with their childcare costs through Working Tax Credits.

If their hours have dropped then they may also be paying less childcare; if this is the case then, where the average childcare costs decrease by more than £10 a week, they must report this to HMRC.

But if their hours have dropped below the required level to receive Working Tax Credit, their Working Tax Credit (and help with childcare costs) will end.



Childcare at the start of the Coronavirus pandemic

At the start of the pandemic, the only children able to access childcare were those of critical/key workers, but from June 1st 2020 the government encouraged certain educational establishments to open to more children - though critical workers' children continued to take priority. 

Some nurseries that temporarily closed during the pandemic may have asked for a retainer to be paid to keep the place open for the child. HMRC said that these payments could not be covered by Tax Credits.


Click here for more information about Tax Credits and childcare costs.

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