Tax credits childcare support

Updated on 20 April 2023

Childcare

There are two tax credits – child tax credit and working tax credit. You can get one or both of them, depending on your household circumstances. HM Revenue & Customs (HMRC) deals with tax credits.

Illustration of couple with a baby and coins

Working tax credit (or WTC) is paid to people who work and are on a low income – it does not matter whether you are an employee or self-employed. You do not need to have children to get WTC.
Child tax credit (or CTC) is paid to people who have children. It is paid seperately to child benefit and you do not have to be working to get it.

There are different qualifying conditions for working tax credit and child tax credit, but you only use one claim form. See our How do I claim tax credits? page for more information about claiming.

You can get help with childcare costs through working tax credit. This section explains more about the childcare element of working tax credit. Use the links below to find out more:

Universal credit (UC) is gradually replacing some benefits including working tax credit and child tax credit. Now that UC is available across the UK, HMRC state that it is no longer possible to make a brand new claim for tax credits and you must claim UC (or pension credit) instead. If you are already claiming tax credits you will eventually be moved across to UC by HMRC/DWP – until that happens you will only be affected by UC if you choose to claim it, if you need to claim another benefit that UC has replaced (such as housing benefit), your circumstances change which ends your tax credit claim or you have been sent a migration notice by DWP/HMRC asking you to make a claim for UC. You should get specialist welfare rights advice before claiming UC if you are already in receipt of tax credits.

There is a childcare element similar to the one in working tax credit within UC, for those who meet the qualifying rules. You can find out more about universal credit in our tax credits and state benefits section.

If you are already receiving tax credits, and start paying for childcare, you may qualify for the childcare element of working tax credit. You will not need to make a claim for UC in this situation, unless required to do so for some other reason.

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?

Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

Am I employed, self-employed, both, or neither? How do I register for tax and National Insurance? What business records should I keep? Working out profits, losses and capital allowances When do I make Self Assessment payments and file my tax return? How do I pay tax on self-employed income? What tax allowances am I entitled to? What is the trading allowance? What National Insurance do I pay if I am self-employed? What is the Construction Industry Scheme (CIS)? Tax checks for taxi, private hire and scrap metal licences How do I work out my profits for universal credit? Do I have to pay VAT if I am self-employed? What is Making Tax Digital for VAT? Pensions and self-employment How do I repay my student loan if I am self-employed? Introduction to enquiries

Tax status Setting things up How the Pay As You Earn system works Taking on a new employee Reporting PAYE in real time Pay and deductions Ongoing payroll tasks End of year processes Employee leaving Employment law Keeping records Getting things wrong Getting more help

Can I live and work in the UK? Residence and Domicile Employment and self-employment National Insurance for migrants Coming to the UK to study Other migrant issues EU and EEA countries

Going abroad Other income Student loans Types of student Volunteering and training Working Do students have to pay council tax? Glossary of Forms Jargon buster Where can I get further help and information?

Help for employees and the self-employed Help for employers Independent living Caring for someone VAT reliefs for disabled and older people Trusts for disabled people Apprenticeships and disability

Savings and tax Property income Council tax and rates Giving to charity Income from a trust or from the estate of a deceased person Capital gains tax Cryptoassets and tax Do I need to register my trust?

Tax credits and benefits Tax credits State benefits Child benefit Universal credit

Employer-supported childcare Free childcare places Tax credits childcare support Universal credit Other childcare support Tax-free childcare

Taxes on death: overview Dealing with the deceased's own tax affairs Tax on income and gains after death Death of a spouse or civil partner Joint property on death Pension and life assurance policies on death Income from a deceased's person's estate Inheritance tax reliefs and exemptions State benefits on death Getting help with bereavement and inheritance tax Bereavement jargon buster

Tax credits childcare support

Childcare

Tax guides

Share this page