Did you know you could be entitled to help when paying for childcare? There are many different schemes available. Read more to find out if you could benefit from Government help.
The government supports several schemes to help you with the costs of childcare.
The main types are:
Working Tax Credit / Universal Credit
Seguro Childcare is registered with OFSTED, so you can access the help if you qualify.
Working Tax Credit / Universal Credit
If you are receiving Working Tax Credit (WTC), you may be eligible to receive an additional childcare element. The childcare element can cover up to 70% of eligible childcare costs up to a maximum of £122.50 per week for one child and £210.00 per week for two or more children. So, for example, if you have one child in childcare, you could receive up
to a maximum of £122.50 per week (70% of £175). The actual amount that can be claimed depends on your income and the cost of your childcare.
Universal Credit is being rolled out in many parts of the country and is replacing WTC for new claimants.
Like WTC, working parents in receipt of Universal Credit will be able to
claim an amount (up to 85%) towards the cost of childcare, up to a maximum of £646.00 per month for one child and £1108.00 for two or more children. As with WTC, the actual amount received will depend on your income and the cost of your childcare.
The rules about who can claim the childcare element of WTC / Universal Credit are pretty complex. For more information, see the Coram and Family Childcare or Childcare Choices websites listed below.
To claim back childcare costs, you need to be able to provide evidence that your child is attending our setting on the dates stated and the cost of that childcare. Your monthly invoices include all the necessary information.
Many businesses offer childcare vouchers as a benefit to their employees. Employer-supported childcare voucher schemes offer you significant savings on childcare costs (up to £904.00 per year for a lower rate taxpayer, more for higher rate taxpayers).
There are several childcare voucher schemes (for example, Computershare, Eden, and Sodexho), but they all operate on the same broad principles.
We are happy to accept childcare vouchers and are already registered with most providers.
The various childcare voucher schemes were closed to new entrants from October 2018, although they will continue to run for parents who have already signed up for them. Instead, the government expects parents to take advantage of the new Tax-Free Childcare scheme. Whether you will be better off sticking with employer-supported childcare vouchers or switching to Tax-Free Childcare depends on your employment status, your income, and how many children you have.
Tax-Free Childcare is a new government scheme that gives eligible families up to £2,000.00 per child per year (or £4,000.00 if the child has a disability) towards childcare costs, including the fees for breakfast, after-school, and holiday clubs. It is supposed to replace the employer-supported childcare voucher scheme. However, it is only open to families where both parents are in employment and earning above a minimum amount per week. In essence, you pay into an online account, and for every £8.00 you pay, the government will top it up by £2.00. You can then use the account to pay for childcare with Ofsted-registered providers.
In certain circumstances, parents may be eligible to claim a Childcare Grant to cover up to 85% of childcare costs if they are full-time students in higher education. However, many conditions apply regarding who can claim the Childcare Grant and how much they will receive - see the information on the.GOV.UK website for complete details.
When it comes to paying your childcare invoice, if you have any doubt that your payment method will be accepted contact us at firstname.lastname@example.org and we will happily help.
Thank you for reading.