Guide discussion: Tax-Free Childcare

ClaireC87

Hello!!
I don’t know if I have baby brain or if i have lost all logic since being on maternity leave.

The example that MSE give for the Tax Free Childcare Scheme is ‘Say your childcare costs are £500 per month, you would pay £400 and the government would pay £100’

But this wouldn’t be the case as if you only pay in £400, then 20% of that would only be £80, making you £20 short!

I have just signed up as will be returning to work soon but can’t get the figures right in my head.

My sons nursey is £595 a month, but if I only pay £476 (which is minus 20% of the total) then i would be £23.80 short if the government paid the 20% on to the £476.

I really hope that makes sense to somebody!

Thank you!!!

sheramber

ClaireC87 wrote: »

Hello!!
I don’t know if I have baby brain or if i have lost all logic since being on maternity leave.

The example that MSE give for the Tax Free Childcare Scheme is ‘Say your childcare costs are £500 per month, you would pay £400 and the government would pay £100’

But this wouldn’t be the case as if you only pay in £400, then 20% of that would only be £80, making you £20 short!

I have just signed up as will be returning to work soon but can’t get the figures right in my head.

My sons nursey is £595 a month, but if I only pay £476 (which is minus 20% of the total) then i would be £23.80 short if the government paid the 20% on to the £476.

I really hope that makes sense to somebody!

Thank you!!!

https://www.litrg.org.uk/tax-guides/help-towards-costs-childcare/Tax-free-childcare#toc-how-does-tax-free-childcare-work-

How much will I get?

For each 80p that you pay into your childcare account, the government will pay in 20p – up to a maximum of £500 (£1,000 if the child is disabled) per three month entitlement period. This means that you can receive up to £2,000 support per child, per year and £4,000 per child, per year if they are disabled.

Kato123

My partner and I are both in the childcare voucher scheme and our child starts school next month. My partner was advised that our 30 hours finishes but 'not to worry' as he can he can now make savings by the tax free childcare scheme. Which he did and has deposited £80 into it (it was already set up via the 30 hours portal) and we can see that the government has topped up £20. Does that mean he now has to leave the childcare voucher scheme as that is most definitely what he doesn't want to do and if so, is there a way of reversing this as we feel he has been duped. Thanks

sheramber

Neither of you can receive child care vouchers if you are in tax free scheme. It is one or the other

https://www.gov.uk/tax-free-childcare

If you get tax credits, Universal Credit or childcare vouchers

You cannot get Tax-Free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.

Which scheme you’re better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you.
Tax credits

Your Working Tax Credit or Child Tax Credit will stop straight away if you successfully apply for Tax-Free Childcare.
Childcare vouchers

You must tell your employer within 90 days of applying for Tax-Free Childcare to stop your childcare vouchers or directly contracted childcare. They’ll then stop giving you new vouchers or directly contracted childcare.

whizzybee

Just to make people aware if anyone sent any payments to their childcare account last Thursday/Friday it may not have reached their account. I have just spoken to them and have confirmed that there was a 'glitch' last week. We are missing a £300 payment so hopefully they are going to put it there soon as we can't make any payments to the childcare provider atm...

Lolapop15

Hi all,
Does anyone know if I can apply for the tax-free childcare scheme before the baby is born, to get ahead on payments?
Thanks in advance!

Rolopops

Blimey, a lot of questions and not too many answers on this thread. I'm hoping someone reading can help me out as I can't find this information anywhere... I would have thought these will be straightforward answers for somebody already in the scheme.

1. You can pay up to 10k into the scheme per year, but I can't find anywhere that says what is meant by a year - is it calendar year, tax year, year of child's life or something else?
2. Can funds paid in during one year be rolled over to the next?
3. Is there an expiry date for the funds at all?

As I say, most grateful for any advice anyone can give!

Needinghelp

Just found out about this scheme even though I have been paying childcare for 18 months. I have registered to the site and made my first payment has anyone back dated their payments?

Thanks

happypie

Hi all,
Does anyone know if I can apply for the tax-free childcare scheme before the baby is born, to get ahead on payments?
Thanks in advance!

---

i don't think so.
it requires birth certificate for confirmation [if child is not born in uk].

Alzum

silvasands wrote: »

There`s no information regarding couples where one partner is a student. Is there any benefit which they can apply for? The couple have 2 children aged 6 and under and live in Wales. Thanks.

I am wondering the exact same thing.. has anyone applied with one parent working as a full time student?

If they won't let us claim it, we would honestly be financially better off separating while she's in university, which is unbelievable!