Childcare Element Of WTC (Introduction)
This section covers the conditions for claims where entitlement to the childcare element of Working Tax Credit ( WTC) needs to be taken into account in the calculation of tax credit awards.
The childcare element of WTC is added to the basic element and any other elements of WTC the claimant is entitled to, where the claimant or partner
- Is incurring relevant childcare charges
Or
- Have entered into an agreement for the provision of childcare which will start in the next 7 days and will incur relevant childcare charges during the period of the award
And is either a
- Member of a couple where both are in remunerative work
Or
- Member of a couple where one member is in paid work and the other is incapacitated, in hospital or prison
From 6 April 2004 parent(s) who are absent from work because they are on childbirth or adoption leave will be eligible to claim the childcare element for their new born child(ren) from the child's date of birth or the date the child(ren) are placed for adoption with them.
The maximum rate of the childcare element of WTC is 80% of the relevant childcare costs incurred by the claimant(s) subject to a weekly maximum limit of £175 for one child and £300 for two or more children. Applying the 80% taper to those maximums results in a maximum available credit of £140 for one child and £240 for two or more children.
