Tax free child car rules

dstill

Hi, can anyone help as we are just about to claim our first monrh of tax free child care allowance. I understand that the Government will contribute 20% up to a maximum of £500 every 3 months. Our monthly child care is £552 so effectively the Government would contribute £92 per month together with our £460. If we put more in the account so we get the maximum contribution of £500 per 3 months are you allowed to build up a credit and if so how long does the credit last for.

Apologies if I'm being stupid but these things don't seem easy to understand.

marliepanda

I doubt it. It!!!8217;s to pay for your childcare not a childcare savings account...

dstill

Sorry if i wasnt clear but we are not intending to save the money, the entire amount will be used to pay solely for childcare in alignment with the required procedures.

Icequeen99

dstill wrote: »

Hi, can anyone help as we are just about to claim our first monrh of tax free child care allowance. I understand that the Government will contribute 20% up to a maximum of £500 every 3 months. Our monthly child care is £552 so effectively the Government would contribute £92 per month together with our £460. If we put more in the account so we get the maximum contribution of £500 per 3 months are you allowed to build up a credit and if so how long does the credit last for.

Apologies if I'm being stupid but these things don't seem easy to understand.

Yes, you can do that and there is no time limit. The only requirement is that the childcare paid for out of the account must be to enable you to work.