How much WTC childcare element will I get?
The childcare element provides support of up to 70% of eligible childcare costs.
Eligible childcare costs are the amount spent on qualifying childcare, up to a maximum of £175 a week for one child, and £300 for two or more children. Therefore, the maximum support with one child in childcare is £175 x 70% = £122.50 a week, and £300 x 70% = £210 a week for two or more children. It is important to note that these thresholds are applied once average weekly childcare costs have been calculated (and added together if there is more than one child).
It is important to calculate your childcare costs accurately and keep a record of your calculations so that you can refer to them when you finalise your award at the end of the tax year and also if your childcare costs change during the year.
The amount of tax credits you get depends on your full household circumstances, such as how many children you have, how many hours you work, whether you qualify for any disability elements, your childcare costs and also your total household income.
You can read more about how tax credits are calculated in tax credits and benefits.