Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
Updated
, see all updates

Entitlement: WTC entitlement: Childcare element: Eligibility for childcare element

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 13(1)

To qualify for a childcare element the claimant:

  • must be 16 or over, and
  • lone parents must be in qualifying remunerative work for 16 hours or more a week, or
  • both members of a couple must be in qualifying remunerative work for 16 hours or more a week, or
  • one member of the couple must be in qualifying remunerative work for 16 hours or more a week and the other

    • is incapacitated
    • is an inpatient in hospital
    • is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence), or
    • is entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992 (with effect from 6th April 2012)

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 15(4)

Where childcare charges have not yet been incurred see TCTM02640.

Note: For qualifying remunerative work see TCTM02400, and for incapacitated for work Reg. 13(4) see TCTM02620.

Working Tax Credit (Entitlement and Maximum Rate) Regulations Reg. 5 & 5A

If a claimant receives Maternity Allowance, Statutory Maternity Pay, Statutory Adoption Pay or Statutory Paternity Pay, they are treated as being in work from the date these payments began, as long as they were in qualifying remunerative work (of at least 16 or 30 hours, whichever applies) before going on the maternity/adoption/paternity leave. It should be noted, that whether or not they received MA/SMP/SAP/SPP, a claimant on ordinary maternity/ordinary adoption/paternity leave, is treated as in work provided they were in qualifying remunerative work before that leave began. A claimant undertaking a period of additional maternity/adoption leave is treated as in qualifying remunerative work during the first 13 weeks of that additional leave period provided they were in qualifying remunerative work before the initial period of ordinary maternity/adoption leave began.

A claimant who is already a parent before going on the ordinary maternity, ordinary adoption or paternity leave, can claim WTC if they worked at least 16 hours a week before the leave began. From April 2004 they can claim the WTC childcare element to help with the costs of eligible childcare for the new baby/child as well as for other children in the family. (For claims for the year 2003/04, claimants could not claim for the cost of childcare for the new child, for which they were taking leave, but could claim the childcare element for the costs of childcare for any other child in the family).

If a claimant is becoming a parent for the first time, WTC is available before the baby/child arrives if they were aged 25 or over and worked at least 30 hours a week before the ordinary maternity, ordinary adoption or paternity leave began. From April 2004, a first-time parent can claim WTC, including the childcare element, from the child’s date of birth or placement for adoption, as long as they usually worked at least 16 hours a week before the maternity, adoption or paternity leave began. (For claims in the year 2003/04, a first-time parent could not claim WTC when going on maternity, adoption or paternity leave unless they were aged 25 or over and usually worked at least 30 hours a week before the leave began. Childcare element for the new baby/child was not available).

Working Tax Credit (Entitlement and Maximum Rate) Regulations Reg. 5(4)

A person who is self-employed is treated as being in qualifying remunerative work for any period which would have been ordinary maternity/ordinary adoption/paternity leave if they had been an employee. The self-employed person must meet the work requirement before that “leave” began.