Changes to childcare arrangements and tax credits

If you are getting tax credits to help with the costs of childcare (the 'childcare element'), it's important to tell the Tax Credit Office straight away about any changes to your childcare arrangements - such as the cost going up or down, if your childcare provider stops being registered or approved or you start getting childcare vouchers from your employer.

Your childcare provider stops being approved or registered

You must tell the Tax Credit Office if any of the following applies to your childcare provider:

they have lost their registration or approval
they decide not to renew their registration or approval
their registration or approval has run out - you must tell the Tax Credit Office even if they have applied to renew their registration

Childcare providers are usually 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 the Tax Credit Office 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.

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Changes to your childcare costs

If your weekly childcare costs change, you must tell the Tax Credit Office 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 the Tax Credit Office 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 applies in each week for 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 the Tax Credit Office 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 the Tax Credit Office straight away if:

you normally pay fixed weekly childcare costs and your actual costs go up by £10 a week or more - and the change applies in each week for 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 you are getting tax credits for fixed childcare costs, and the weekly costs are about to change, you can tell the Tax Credit Office 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 report the change 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 the Tax Credit Office straight away.

Find out how to work out your weekly childcare costs

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Changing your registered or approved childcare provider

You should tell the Tax Credit Office 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 the Tax Credit Office may need to contact your childcare provider from time to time to make checks. If they are unable to contact your provider, they may stop paying your tax credits.

You must tell the Tax Credit Office 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 the Tax Credit Office 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 is meant by 'approved' and 'registered' childcare in the leaflet 'Help with the costs of childcare'.

Download the leaflet 'Help with the costs of childcare (PDF160K)

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You start getting childcare vouchers from your employer

You cannot claim the childcare element of tax credits for any amount your employer gives you towards the cost of your childcare. This can be in cash or in vouchers. This includes any vouchers in return for a reduction in the amount of pay you receive, often known as 'salary sacrifice'.

If you are already getting cash or vouchers from your employer, you must tell the Tax Credit Office immediately and at the latest within one month of the date you started to get them. If this happens your tax credits are likely to go down if all your other circumstances stay the same. If you do not report this, you could be overpaid tax credits which you will have to pay back. You may also have to pay a penalty of up to £300 if you delay in reporting the change.

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Contact the Tax Credit Office

If you need more help you can call the Tax Credits Helpline which is open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Year's Day. The numbers you can ring are:

tel 0845 300 3900
textphone 0845 300 3909 - if you are deaf or have a hearing or speech impairment

If you're calling from overseas you can also contact the Tax Credit Office on Tel + 44 289 053 8192.

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