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HMRC internal manual

Claimant Compliance Manual

From
HM Revenue & Customs
Updated
, see all updates

Overview: Childcare Costs

Support is provided for working families with childcare costs through the child care element.

To qualify individuals (or both members of a couple) must be working at least 16 hours per week or one of the couple must be working at least 16 hours and the other is

  • classified as incapacitated or having a limited capability for work
  • an in-patient in hospital
  • in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence)
  • in receipt of Carer’s Allowance or
  • entitled to Carer’s Allowance, but do not actually get any payments as they receive other benefits instead

and

  • the customer(s) must pay a registered childcare provider for the children.

Note: The Carer’s Allowance exception only applies from 6 April 2012. The customer may be entitled to Carer’s Allowance but not actually get any payments as they receive other benefits instead

The maximum rate of the childcare element of WTC is a percentage of the relevant childcare costs incurred by the customer subject to a maximum limit. There are different maximum limits depending on whether there is one child or two or more children. See TCTM03101 for the current rate.