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HMRC internal manual

Tax Credits Technical Manual

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HM Revenue & Customs
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Entitlement: WTC entitlement: Childcare element: Introduction

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 3(1)(d)

The childcare element is an element of WTC and is added to the basic element with any of the other qualifying elements of WTC appropriate to the claimant’s circumstances.

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 20(2) & (3)

From 6 April 2011 the childcare element can help with 70% of eligible childcare costs up to a maximum cost of:

  • £175 a week, where the childcare is in respect of one child, and
  • £300 a week. where the childcare is in respect of two or more children

This means that the maximum childcare element available is £122.50 for the childcare for one child and £210.00 for two or more children.

(For awards prior to 6 April 2011, the childcare element allowed for up to 80% of eligible cost and for awards prior to 6 April 2006, the rate was 70%)

Payment of the childcare element will be made to the main carer.