Payschool

WHETHER your child is a cute toddler or a stubbly 15-year-old, if YOU are a working parent you may be missing out on thousands to help pay for childcare.

And right now it's crucial. As the summer hols begin, mums and dads across the country are getting hot and bothered trying to juggle supervising the nippers and going to work.

Yet even if you ONLY pay for childcare in holidays, you're still eligible for all my four steps below to get vital help.

STEP ONE: £3,500 A YEAR IN CHILDCARE TAX CREDITS

FOR the phrase 'tax credits' here, read PAYOUT. And the average tax credit to help cover childcare costs is £68 a week - £3,500 a YEAR.

You may think you're already getting this, but do check. You could well be confusing it with the separate child tax credit. Yet this is about the sexily-titled "child-CARE element of the working tax credit".

Frustratingly, the criteria for whether you are eligible are more complex than Ronaldo's dating schedule - so I've developed an easy rule of thumb.

If you pay for childcare and are a single parent working more than 16 hours a week (or a couple both working more than 16 hours) with annual family income under £40,000, you should DEFINITELY check it out.

This doesn't mean you will get it - but if you do, the amount is well worth it. And those with many kids or a disabled child, may be entitled to a decent amount even ABOVE this.

As it's so complicated, I've a speedy calculator to tell you roughly what you're due at www.moneysavingexpert.com/childcare . To officially check, call the tax credit hotline on 0845 300 3900.

STEP TWO. GET £1,000 IN CHILDCARE VOUCHERS

CHILDCARE vouchers can save many parents over £1,000 A YEAR. They need to be organised via employers, though many large and small companies take part.

To make it work usually involves giving up some salary. Don't panic! You still WIN. It works like this:

You sacrifice £1,000 of salary, but for most people that only means losing £700 in your pocket after tax and national insurance. Instead you get £1,000 of vouchers, meaning you're £300-per-thousand better off.

Outrageous

In other words, vouchers enable you to pay for childcare from PRE-TAX salary. And this doesn't cost your employer anything: in fact, your employer can GAIN by saving on national insurance. If the firm you work for doesn't offer a scheme, try to persuade them to start one.

VOUCHER WARNING: It all sounds great, yet getting childcare vouchers can reduce your eligibility for childcare tax credits, as what you get depends on what you pay in CASH not vouchers. Some households could actually be worse off.

Of course, if you're not eligible for tax credits, vouchers are ALWAYS good. If you are - and have family income above £35,000 - you're likely to gain substantially with vouchers. If it's below £25,000 you're likely to lose out.

Don't let this put you off vouchers, though. Some people gain thousands of pounds with them. To get an exact answer, there's a calculator hidden on HMRC website www.hmrc.gov.uk/calcs/ccin.htm .

Yet frankly, it's outrageous that using a government scheme can mean you LOSE out. What's worse though, is how it is communicated: this voucher danger is often hidden, and so many variables mean it's impossible to work out yourself.

A month ago I bumped into Children's Minister Ed Balls in the GMTV corridors, and warned him of this massive black hole.

Like all politicians, he smiled and nodded. I then followed up by e-mail but have YET to receive so much as an acknowledgement.

So if you're using vouchers and realise you have been losing out, let me know at notw@moneysaving expert.com . Maybe it'll help make Mr Balls pay attention.

STEP THREE: USE FREE OR DISCOUNTED HOLIDAY CLUBS

TENS of thousands of schools across the UK offer summer activities such as sports coaching, dance, drama or music.

Many are free, some require payment, yet then they can be part of your Childcare Tax Credit application or you can use vouchers.

Don't think your child need go to their own school: normally any in the area can be used. You can find out what's on in your area from the Families Info Services on 0800 234 634.

STEP 4: FREE CLASSES FOR THREE TO FOUR-YEAR-OLDS

EVERY three and four-year-old is entitled to 12.5 hours a week of classes, for at least 38 weeks a year. These are held countrywide at Sure Start children-centres, pre-schools, nurseries and childminders.

If you're already shelling out on childcare, switch to these free services and save a PACKET.

SEND questions for publication to notw@moneysavingexpert.com

GMTV money guru Martin Lewis is the creator of the Consumer Revenge website www.MoneySavingExpert.com which is packed with info on how to get more money in your pocket.

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