We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Tax free childcare

richboxy
Posts: 4 Newbie
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c) Once its in the account it cant be withdrawn, ie, use on childcare or lose it.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
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c) Once its in the account it cant be withdrawn, ie, use on childcare or lose it.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
0
Comments
-
-
hasty response, thank you kindly.0
-
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.0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.7K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 253.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards