Accepting Tax credits

[Petshrinklj]

I'm doing pre-reg course and attempting the business plan. It says to state whether I will be able to accept tax credits as payment. I'm a bit dumb when it comes to finance things. How do I know if I could accept them or not. I don't think I know what they are.

[FussyElmo]

I don't ask parents whether or not they are claiming tax credits? I do make it clear however that it is their responsability to pay me not tax credits.

I tell people I accept the voucher system.

A lot of people earning under a certain level can get tax credits towards their childcare costs :thumbsup:

[butterfly]

You can't actually accept tax credits as payments. Tax credits are money paid to parents who qualify for extra help with their childcare costs. Basically they have to apply to the government stating how much their childcare will cost and who their childcare provider will be. If they use a registered childcare provider the government may award them up to 80% of their childcare costs. The money will be paid to them but they should use it to pay you. You may then get a phone call from the government to check how many hours the child is using with you so they can check that the money is going towards the childcare.

[Petshrinklj]

Ohh ok thank you both for that. I think I get it now. But now I'm wondering what's the voucher system? Sorry for being so clueless :blush:

[rickysmiths]

You don't accept Tax Credits because they are nothing to do with you. A parent will apply for them and if they get them they should use them to pay that % of your bill. You may not even know if a parent gets them unless you get a letter from the tax people asking you to confirm what the parent pays you.

[butterfly]

Voucher schemes are used by some employers whereby parents can ask for some of their wages to be converted into childcare vouchers. Their wages are converted before tax is taken out so basically they are taxed on less earnings. Parents can then decide which childcare provider to pay the vouchers too - usually they come through into your bank account. All you have to do is register at the time with the particular voucher system that the parents wish to use. I'm registered with about 5 different voucher schemes - very easy just send them a copy of your certificate to prove you're registered.

[Petshrinklj]

Thank you for that info. I think I get it now. Ta :)