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Tax Credits Rules for Childcare Costs

Newsletter issue - February 08.

If you claim the working tax credit you can include in your claim the amount you spend on registered or approved childcare. This is subject to both of the adults who make the tax credit claim working enough hours to qualify, which is normally 16 hours per week. The tax credits your family receives will refund you up to 80% of your childcare costs, to a maximum of £140 per week for one £240 per week for two or more children.

You can only claim for childcare you pay for up to 1 September following your child's 15th birthday, or 16th birthday if your child is disabled. When this date passes, or you stop paying for childcare for another reason, you must tell the Tax Credits Office as soon as possible.

You must also tell the Tax Credits Office whenever your average childcare costs go up or down by more than £10 per week. To work out the average you need to estimate the total amount you will spend on childcare for the whole of the year and divide by 52 to get a weekly total.

Remember it is only the fees paid to registered or approved childcare providers that you can claim for. If you start using a childcare provider who is not registered or approved, or they lose their registration then those costs cannot be claimed for.

 

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Choice Events Limited

All at Beauchamp Charles are very helpful, approachable and easy to talk to. They keep me informed with key dates; I can feel totally confident that I won't ever miss any deadlines! Whoever I deal with, always deal with matters professionally and efficiently and if they are unavailable they get back to me promptly.

FT leisure Ltd

I have worked with Beauchamp Charles as our management accountants for over 20 years and have never received anything less than exceptional service. Their approach is both professional and personal. Finances and particularly tax strategies are a minefield for small businesses; Beauchamp Charles have in-depth knowledge of these area, which is comforting. They pay very close attention to our business activities and have provided financial strategies that have helped our company develop.

Fredrick Thomas Electrical and Maintenance

We have used Beauchamp Charles since company formation back in 1998. Beauchamp Charles offers us a one to one service as they are small enough to offer this dedicated service and large enough to do the work and offer best advice. They get to know us as individuals and a business, always giving sound advice. Frederick Thomas Electrical are in a stronger place thanks to the service we get from them.

Barnes Walker Landscapes Limited

We are a small business and had employed the same accountancy firm for many years. Two years ago we took the decision to switch to Beauchamp Charles after several othe local businesses recommended them very highly to us. We have not been disappointed with the service they have provided to us over these last two years.