Working Tax Credit

Helping those on low incomes and those with children

The Working Tax Credit provides a top up to the wages of low income workers.  It is made up of various elements, including the basic, couples, 30 hours, lone parent, disability and childcare elements.  To be eligible for Working Tax Credits, you must have dependent children and/or a disability and work at least 16 hours a week or more.  If you do not have dependent children and/or a disability you must be aged at least 25 years old and work at least 30 hours a week.  Working Tax Credit is paid through your salary.

Childcare element of the Working Tax Credit 
You may get help with childcare costs if you pay for registered  or approved childcare and if, as a lone parent you work at least 16 hours per week or, as a couple you both work at least 16 hours per week.

The childcare element of the Working Tax Credit pays up to 80% of registered childcare costs, which means you can claim up to a maximum of 80p for every £1 you pay for registered or approved childcare up to certain limits.  This is a maximum of £175 per week (80%=£140) for one child and £300 (80%=£240) per week for two or more children.

The element is paid directly to the main carer for:

• Registered childminders, nurseries, playschemes or out of school clubs
• Certain schools or other establishments exempt from registration
• Providers of childcare for children aged eight years old or more at specifically accredited organizations
• Approved childcarers under the Childcare Approval Scheme

The childcare element of the Working Tax Credit is paid into the bank account of the main carer.

To find out if you are eligible or to make a claim call 0845 300 3900 (open Monday to Sunday 8.00am-8.00pm), textphone 0845 300 3909  or visit  www.hmrc.gov.uk/individuals to make a claim online.

For further information on financial help available to families go to Help with childcare costs