In this section:
- How changes at home and work affect your tax credits
- Tax credits: how and when to tell us about changes
- Family changes - how they can affect your tax credits
- Changes at work - how they can affect your tax credits
- Changes in income and tax credits
- Changes to childcare arrangements and tax credits
- You haven't reported a change - what happens to your tax credits?
Changes to childcare arrangements and tax credits
If you are getting tax credits to help with the costs of childcare, it's important to tell us straight away about any changes to your childcare arrangements such as the cost going up or down, or if your childcare provider stops being registered or approved.
Your childcare provider stops being approved or registered
You must tell us if your childcare provider:
- is no longer approved or if their registration runs out - you must tell us about these changes even if they have applied to renew their registration
- has been checked for approval but has lost their registration or approval
Childcare providers are given a letter or certificate as proof of their approval or registration. This might be for example by Ofsted in England, or by a home childcare provider scheme in England, Wales or Northern Ireland. Ask to see the letter or certificate and keep a record of the details, or take a copy of it.
Some childcare providers have to regularly renew their approval or registration. They will have paperwork that shows when it runs out. Make a note of the date and make sure you see the new proof of their approval or registration.
Other childcare providers are checked regularly to make sure they are still suitable. Many organisations publish the results of the checks they do. Ask your childcare provider how to get these results.
It's important that you tell us about these changes within one month. If you don't you could be paid too much money and have to pay it back. You may also have to pay a penalty of up to £300.
Changes to your childcare costs
If your weekly childcare costs change, you must tell us by how much. You must work out your new average weekly childcare costs in the same way that you did when you made your original claim.
For help working out your average weekly childcare costs, see the notes that came with your tax credits claim form or renewal pack, or call the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909.
Download notes on making a tax credits claim (PDF 667K)
If your childcare costs go down
You must tell us within one month if:
- you normally pay fixed weekly childcare costs and your actual
costs go down by £10 a week or more, and the change lasts for
at least four weeks in a row - you pay different amounts for childcare at different times, for example, you pay more in the school holidays than you do during term time and your new average weekly costs go down by £10 or more
- you don't pay for childcare any more
If this happens, your tax credit payments are likely to go down if all your other circumstances stay the same. If you do not tell us within one month, you could be building up an overpayment which you may have to pay back. You might also have to pay a penalty of up to £300.
Find out how to repay overpaid tax credits
If your childcare costs go up
It is important to tell us straight away if:
- you normally pay fixed weekly childcare costs and they go up by £10 a week or more, and the change lasts for at least four weeks in a row
- you pay different amounts at different times and your new average weekly childcare costs are at least £10 more than your current costs
If the costs you are claiming are about to change, you can tell us at the start of the first week of the change, as long as you are sure that it will last for at least the next four weeks.
If this happens and all your other circumstances stay the same, you may be able to get more money. The increase in your payments will happen from the first week of the change as long as you tell us within three months of it happening.
Any increase to your payments can only be backdated by up to three months, so it's important to tell us straight away.
Find out how to work out your weekly childcare costs
Changing your registered or approved childcare provider
You should tell us if you change your childcare provider even if the cost does not change by £10 or more. This won't affect the amount of tax credits you get, but we may need to contact your childcare provider from time to time to make checks. If we're unable to contact them, we may stop paying your tax credits.
You must tell us immediately and at the latest within one month if:
- you start using a child care provider who is not registered or approved for tax credits purposes
- you start using a relative to look after your child at home
If you don't tell us on time, you could be building up an overpayment which you may have to pay back and you could be charged a penalty.
There is more information about what we mean by 'approved' and 'registered' childcare in the leaflet 'Help with the costs of childcare'.
Download the leaflet 'Help with the costs of childcare (PDF 652K)
Contact us
You can tell us about any changes in circumstance by calling the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909 (open from 8.00 am to 8.00 pm, seven days a week except Christmas Day, Boxing Day, and New Year's Day).
More useful links
Help with childcare costs - do you qualify?
