Child Tax Credit (CTC)
This is paid into the bank account of the main carer - the person mainly responsible for looking after the children. Families on incomes of up to £58,000 a year (or £66,000 a year if there is at least one child who is less than a year old) can benefit from the new CTC whether or not they are working. This money acknowledges and supports the cost of bringing up children.
Childcare element of Working Tax Credit (WTC)
To apply for the childcare element of WTC:
•lone parents must work at least 16 hours a week
•both members of a couple must work 16 hours a week or more
•or one member of a couple must work 16 hours a week or more and the other member must be incapacitated.
Parents must also use one of the following types of qualifying childcare:
•care registered by Ofsted, for example childminders, nannies, nurseries, activity clubs, playschemes or out-of-school clubs
•care provided outside of school hours, by a school on the school site
•carers approved on the Childcare Approval Scheme (CAS)
•an approved foster carer, unless the child is the foster carer's foster child
•a domiciliary worker or nurse from a registered agency providing care in the child's home.
It looks like it's total income based. working tax credit goes to paying child care. They may also get childcare vouchers from their employers which is a tax and NI free way of contributing to the cost of care from the salary.
nothing is as good as it seems!
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both ways are expensive and leaves me with not alot of money at the end of the month!!it hardly makes it worth it leaving your child all week just to bring a few extra pounds in!!
