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    • richboxy
    • By richboxy 12th Jun 17, 2:58 PM
    • 4Posts
    • 0Thanks
    richboxy
    Tax free childcare
    • #1
    • 12th Jun 17, 2:58 PM
    Tax free childcare 12th Jun 17 at 2:58 PM
    Does anyone know if it's possible to put the maximum amount into the new tax free childcare account to get the governments added 20%, but not actually use the account to pay for childcare?... in effect using it as a savings account.

    Eg, put in £8,000, receive £2,000 from gov, then withdraw £10,000 to own bank account and repeat each year?

    FYI I don't want to do this although it would be a nice little earner!... I'm due to start paying childcare costs from July 3rd 2017 and i'm just curious as to whether or not,
    a) I can withdraw any of my unspent childcare cash with the gov bonus or
    b) I can withdraw but lose the bonus or
    c) Once its in the account it cant be withdrawn, ie, use on childcare or lose it.

    Thanks, Rich
Page 1
    • sheramber
    • By sheramber 12th Jun 17, 3:07 PM
    • 3,866 Posts
    • 2,874 Thanks
    sheramber
    • #2
    • 12th Jun 17, 3:07 PM
    • #2
    • 12th Jun 17, 3:07 PM
    b applies
    https://www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know
    • richboxy
    • By richboxy 12th Jun 17, 3:16 PM
    • 4 Posts
    • 0 Thanks
    richboxy
    • #3
    • 12th Jun 17, 3:16 PM
    • #3
    • 12th Jun 17, 3:16 PM
    hasty response, thank you kindly.
    • Annie Clark
    • By Annie Clark 13th Jun 17, 10:49 AM
    • 29 Posts
    • 4 Thanks
    Annie Clark
    • #4
    • 13th Jun 17, 10:49 AM
    • #4
    • 13th Jun 17, 10:49 AM
    The 20% is tax relief on childcare spending, not a gift from the government. You can only use it to pay registered childcare providers.

    If you don't use the money you added to the TFC account, you can move them back to your bank account, and the government will take back their contribution. It's much more flexible than childcare vouchers - you only put in there what you need and can withdraw at any time.
    • Annie Clark
    • By Annie Clark 13th Jun 17, 10:51 AM
    • 29 Posts
    • 4 Thanks
    Annie Clark
    • #5
    • 13th Jun 17, 10:51 AM
    • #5
    • 13th Jun 17, 10:51 AM
    FYI I don't want to do this although it would be a nice little earner!...
    Originally posted by richboxy
    Of course you would, who wouldn't... only if it were possible and/or legal. 20% is anything but little
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