Guide discussion: Tax-Free Childcare

LizPhillips

5 weeks later and my application is still being considered!

chrisdy34

Can anyone else pay into the child care account or must it be one of the two parents?

Mupette

rpc wrote: »

Not true. Childcare vouchers and tax credits can be claimed together, there is nothing to stop anyone doing this. It isn't usually a good idea because you end up worse off in most cases. We only did this because our childcare costs were above the maximum limit for tax credits and because I have grandfathered rights to higher rate tax relief on my vouchers.

The new tax free childcare cannot be claimed at the same time as tax credits, it is in the rules of the scheme. If you claim both, something will need repaid.

That's not what i said.

I said the childcare element of tax credits

rpc

Mupette wrote: »

That's not what i said.

I said the childcare element of tax credits

I know what you said and replied to the same.

Generally, if you claim the childcare element of tax credits and childcare vouchers then you end up worse off that if you just claimed the tax credits. It's within the rules, just not normally a good idea. Your tax credits go down by more than the savings you make using childcare vouchers.

The new tax free childcare cannot be used when in receipt of any tax credits.

Mupette

rpc wrote: »

I know what you said and replied to the same.

Generally, if you claim the childcare element of tax credits and childcare vouchers then you end up worse off that if you just claimed the tax credits. It's within the rules, just not normally a good idea. Your tax credits go down by more than the savings you make using childcare vouchers.

The new tax free childcare cannot be used when in receipt of any tax credits.

Update on this, RPC having looked into this, things have changed it's a case of if you do try to claim both, it is heavily suggested you go back to HMRC before signing up to childcare vouchers to see how much it can affect you, if you don't there is a risk of being overpaid by HMRC.

rpc

Mupette wrote: »

Please feel free to contact HMRC

We have...

HMRC also have a handy calculator on their website to tell you how much your tax credits would change if you took childcare vouchers. Bit of an odd things for them to provide if it is not allowed.

This snippet:

Government_on_childcare_element_of_tax_credits wrote:

You may still be entitled to some tax credits payments. When you claim don’t include the childcare vouchers as income. When you work out your childcare costs don’t include the amount covered by the vouchers.

Which is exactly what we did and we went through it in writing because it is basically too complex for the call centre.

edit: EIM16059, TCTM04215 and particularly TCTM02630 seem to be the relevant rules.

Emjay92

Hi guys...

Forgive me if I am being stupid but my son won't be in childcare until he's two, next June. I am eligible for tax free childcare so am I able to open an account now to save ahead of him starting preschool?

Thanks

alan_ni

I have been trying to register for the tax free childcare for over 2 weeks now. However each time after I enter my government gateway and access code, I get the message "We are experiencing technical difficulties, please try later". Is anyone else having the same issue? Has anyone actually managed to get registered in recent weeks?

I have phoned HMRC several times - on the last occasion they raised an incident report and said someone would contact me. Five days later and I'm still waiting.

tyrab79

hi
has anybody actually paid any money in yet? I am interested to know if the government funding does get paid in the same day as you pay in as I'll have to pay my childminder the same day I get paid and pay in my money.....
thanks

afro_2

It's all working well for me now - Money has gone in, and reached my nursery. I have made a test payment and it went through earlier this month without any issue.

Lessons learned - money appears to arrive the day after sending, even for "faster payments" or standing orders. I've not tried a card payment.

The money might take a day or so to get to the provider - although I can't be sure with my nursery.

Access to the site seems reliable at the moment - I hope it is still running quickly at the end of the month when payments are needed.

Also - don't reset your password or loose that gateway ID number - it took a while to get back on after I reset mine!