Changes to your childcare arrangements and tax credits
If you are getting tax credits to help with the costs of childcare, it's important to tell the Tax Credit Office straight away about any changes to your childcare arrangements. These include, for example, changes to your childcare provider, your childcare costs going up or down, getting childcare vouchers from your employer or help with your costs from the local authority.
You must tell the Tax Credit Office if any of the following applies to your childcare provider:
Ask your childcare provider how you can keep up to date with any of these changes. For example your provider may regularly need to renew their registration with Ofsted or approval under a Childcare Approval Scheme.
Check what date it runs out and ask to see the new proof of their approval or registration.
It's important that you tell the Tax Credit Office about these changes within one month. If you don't you could be paid too much money and have to pay it back. You may also have to pay a penalty of up to £300.
If you change to another childcare provider who isn’t registered or approved
You must tell the Tax Credit Office immediately and at the latest within one month if you change to a child care provider (including a relative) who is not registered or approved for tax credits purposes.
If you don't tell the Tax Credit Office on time, you could be building up an overpayment which you may have to pay back and you could be charged a penalty.
If you change to another registered or approved childcare provider
You should tell the Tax Credit Office if you change to a different registered or approved childcare provider. This won’t usually affect the amount of tax credits you get if all your other circumstances stay the same.
The Tax Credit Office may need to contact your childcare provider from time to time to make checks. If they are unable to contact your provider, they may stop paying your tax credits.
If your childcare costs go down or stop
You must work out your new average weekly childcare costs in the same way that you did when you made your original claim.
For help working out your average weekly childcare costs, you can follow the link below or call the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909.
You must tell the Tax Credit Office within one month if:
If this happens, your tax credit payments are likely to go down if all your other circumstances stay the same.
If you do not tell the Tax Credit Office within one month, you may be building up an overpayment which you may have to pay back. You might also have to pay a penalty of up to £300.
If your childcare costs go up
You must work out your new average weekly childcare costs in the same way that you did when you made your original claim.
For help working out your average weekly childcare costs, you can follow the link below or call the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909.
It is important to tell the Tax Credit Office straight away if:
If you are getting tax credits for fixed weekly childcare costs, and the costs are about to change, you can tell the Tax Credit Office at the start of the first week of the change. Make sure first of all that you are sure that it will last for at least the next four weeks.
If your childcare costs go up and all your other circumstances stay the same, you may be able to get more money. The increase in your payments will happen from the first week of the change as long as you report the change within three months of it happening. This is because any increase to your payments can only be backdated by up to three months.
You should tell the Tax Credit Office immediately - and at the latest within one month - if any of the following applies:
If this happens, your tax credits are likely to go down if all your other circumstances stay the same.
If you do not report the change, you could be overpaid tax credits which you will have to pay back. You may also have to pay a penalty of up to £300 if you delay in reporting the change.
If you need more help you can call the Tax Credit Helpline on 0845 300 3900, or textphone 0845 300 3909 if you are deaf or have a hearing or speech impairment (open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Year's Day).
If you're calling from overseas you can also contact the Tax Credit Office on +44 289 053 8192.
Provided by HM Revenue and Customs