Tax Credit – Child Care Element

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  • #22623
    JamesPickering
    Participant

    I am having a moment so if anyone can advise I would be very grateful.

    Claimant works as a taxi driver but works during school terms.

    Claimant receives CTX & WTX and within the WTX received £5200 per year in Child Care Element.

    We are taking all her WTX including the CCE and CTX into account at the moment and because she is not working there is are no CCC disregarded.

    She is still paying out over £400 per month on Child care expenses.

    Are we right to take all the Tax Credits into account as when she starts work earning £100.00 per week her HB/CTB will not change but she will have an extra £100 per week income?

    I think it is based on the logic that she should have no CCC whilst she is not working but I am not convinced.

    #8897
    jerikaz
    Participant

    I haven’t seen anything to say that LAs shouldn’t take the full Working Tax Credit into account. She is paid that much and that is what counts in the HB/CTB calculations.

    However, is the Working Tax Credit award correct to continue with the CC element whilst she is not working? I’m not an expert on Tax Credits so am not sure.

    #8898
    Kevin D
    Participant

    I agree with jerikaz.

    By all means try and inform Tax Credits that you have info suggesting TC is being overpaid, but they’ll probably tell you that it is for the clmt to inform them and that no further action will be taken until that happens…. 😯 .

    In the meantime, so long as Tax Credits are being paid, they get taken into account.

    #8899
    Anonymous
    Guest

    Is the claimant self-employed?

    #8900
    JamesPickering
    Participant

    Slight change following more ear bashing from the claimant.

    She is now stating that she is self employed but has no work during the term time as all she does are school runs.

    She reckons she earns approximately £4000 per annum.

    This is news to us, we are assessing her as employed as she provided proof of her earnings from her taxi company.

    Grr. 🙄

    Edit – Sorry Andy, posted as you did.

    #8901
    Anonymous
    Guest

    Ask for her last self-assessment return, or a letter from HMR&C confirming she has registered as self-employed

    #8902
    Carol Meredith
    Participant

    You are supposed to tell tax credits if your child care costs cease or reduce by more than £10 per week for more than 4 weeks in a row. It sounds as if childcare costs will not do this in this case. There is only one school holiday that exceeds 4 weeks but even then the childcare provider will almost certainly still charge in order to keep the place open so your claimant will have an ongoing childcare cost.

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