All of the links on gov sit’s about starting 30 hr free childcare have a warning that it may affect your tax credit entitlement. Surely it on affects the childcare element? At the moment I get 70 percent childcare paid back in tax credit. So I pay 30 percent of my childcare on balance. If I start getting 30 hours free then my childcare bill will go down. Will I not still get 70 percent of it back through tax credit and pay 30 percent myself and therefore although I get less in tax credit (the 70 percent of bill will be a lower amount as my bill will be less) I will also be pain less as my 30percent will be a smaller amount and therefore overall I will be better off?
The warning on the sites says to check that you are better off before claiming free hours. Am I missing something? Why would I not be better off? Can’t I just update my claim on tax credit and say I have a lower childcare bill now? And still get the same percentage paid? I will still have more than the free 30 hours childcare as I have holiday care and a sibling there too for wraparound and holidays.
Am I missing something like a threshold? The warning just seems to imply there could be an adverse effect and I can’t see what that would be.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.