Tax Free Childcare Question - If you pay in and Get your 20% - Will they take it off you ?

Merchandiser2367

Couldn't finish the question as not enough space!

So basically, if you pay in £100 and government gives you £20 in your account. Balance = £120

If you then need to take back that £100 (or months down the line as was not spent on childcare for any reason and was sitting in account), will the government take the extra £20 back out?

We have a little spare pot in our account but may need to use a little of it so just trying to work out if this will happen?

Thanks

superbigal36

Whatever your current balance is will include the govt contribution.
You can only withdraw what you have paid in.

The withdrawal process means emptying the account.
You cannot just take "a little bit back" or whatever suits.

In your scenario if you have £120 then a withdrawal will refund you £100 and the Govt £20

The transaction will do this all automatically leaving your balance at Zero.

If you were trying to be creative and hoping the tax payers contribution was left untouched then sorry

sheramber

https://www.turn2us.org.uk/Benefit-guides/Tax-Free-Childcare/How-will-Tax-Free-Childcare-

If your circumstances change or you no longer want to pay into the account, then you’ll be able to withdraw the money you have built up. For any amount you withdraw, the government will withdraw the contribution it has made based on that amount.