Universal credits and childcare vouchers saved up

Avalanche123

NedS said:

Avalanche123 said:

What refund? TFC can be counted towards savings even though you can use it only towards childcare but childcare vouchers cant? So if you have 5K in TFC or indeed actual money you will receive everything. But if you have money in childcare vouchers you wont get the help? Does that sound fair to you?

You keep making reference to this and I'm confused - or rather I think you may be confused.

The regulations/guidance you quoted on page 1 of this thread are saying that any money you have in a Tax Free Childcare account are counted as capital (savings) that you have, along with cash in your bank accounts / savings accounts / ISAs etc. The is relevant only to the fact that if you have more than £6000 / £16,000 in capital (savings), you will receive less or no UC due to the savings you have. The money in a TFC account can be withdrawn and used for anything, but you will only get the 80% back that you contributed, not the 20% tax relief.

The point here is that you can only get 'help' with childcare costs once, under one scheme. So if you pay using TFC account or childcare vouchers, you have received help towards those by way of tax relief. If you claim help through UC you will receive help by way of UC refunding 85% of the eligible costs. But you can only receive help under one scheme, and which scheme that is will depend upon your circumstances.

I am not confused. Please stop being patronising.

How is it fair then when you STOP claiming TFC and have money left in the account it doesnt count (unless its above 6K together with other savings)?

But you say you cant do the same with the childcare vouchers. Nothing is stoping people to carry on paying of childcare with what is left in their TFC once they start claiming UC.

HillStreetBlues

It's not what is "fair"  it's what the rules are.

The rules say if you use a voucher this can not be claimed back under UC

This forum isn't an echo chamber, members will give their advice based on the legal rules, as they have done on this thread.

Spoonie_Turtle

The childcare vouchers aren't counted as savings.  They're completely ignored.  You can still use the vouchers for childcare.  I don't understand what your grievance is. 

Alice_Holt

Avalanche123 said:

NedS said:

Avalanche123 said:

What refund? TFC can be counted towards savings even though you can use it only towards childcare but childcare vouchers cant? So if you have 5K in TFC or indeed actual money you will receive everything. But if you have money in childcare vouchers you wont get the help? Does that sound fair to you?

You keep making reference to this and I'm confused - or rather I think you may be confused.

The regulations/guidance you quoted on page 1 of this thread are saying that any money you have in a Tax Free Childcare account are counted as capital (savings) that you have, along with cash in your bank accounts / savings accounts / ISAs etc. The is relevant only to the fact that if you have more than £6000 / £16,000 in capital (savings), you will receive less or no UC due to the savings you have. The money in a TFC account can be withdrawn and used for anything, but you will only get the 80% back that you contributed, not the 20% tax relief.

The point here is that you can only get 'help' with childcare costs once, under one scheme. So if you pay using TFC account or childcare vouchers, you have received help towards those by way of tax relief. If you claim help through UC you will receive help by way of UC refunding 85% of the eligible costs. But you can only receive help under one scheme, and which scheme that is will depend upon your circumstances.

I am not confused. Please stop being patronising.

How is it fair then when you STOP claiming TFC and have money left in the account it doesnt count....

       I will admit to being totally confused by this thread (and in particular the OP's adversarial responses to the advice given).

     As I thought money in a Tax Free Childcare account (at least 80% of it) DID count as capital. 

(See ADM Chapter H1, para H1158) if other forum users want confirmation of Ned's post.

HillStreetBlues

Alice_Holt said:

       I will admit to being totally confused by this thread (and in particular the OP's adversarial responses to the advice given).

     As I thought money in a Tax Free Childcare account (at least 80% of it) DID count as capital. 

(See ADM Chapter H1, para H1158) if other forum users want confirmation of Ned's post.

Childcare vouchers and Tax Free Childcare account  are different schemes.
This thread is about the former (well should be)

Alice_Holt

HillStreetBlues said:

Alice_Holt said:

       I will admit to being totally confused by this thread (and in particular the OP's adversarial responses to the advice given).

     As I thought money in a Tax Free Childcare account (at least 80% of it) DID count as capital. 

(See ADM Chapter H1, para H1158) if other forum users want confirmation of Ned's post.

Childcare vouchers and Tax Free Childcare account  are different schemes.
This thread is about the former (well should be)

    Yes, I know that.

    My post addressed whether money in a Tax Free Childcare account counts towards capital for means tested benefits.

HillStreetBlues

Alice_Holt said:

    Yes, I know that.

    My post addressed whether money in a Tax Free Childcare account counts towards capital for means tested benefits.

I would have though that adds to any confusion the OP might have taking about a  different scheme.

Spoonie_Turtle

HillStreetBlues said:

Alice_Holt said:

    Yes, I know that.

    My post addressed whether money in a Tax Free Childcare account counts towards capital for means tested benefits.

I would have though that adds to any confusion the OP might have taking about a  different scheme.

The OP is the one who started talking about the two schemes and what counts towards savings.  This is why none of us can understand what their actual issue is. 

HillStreetBlues

Spoonie_Turtle said:

The OP is the one who started talking about the two schemes and what counts towards savings.  This is why none of us can understand what their actual issue is. 

The issue is just childcare vouchers,  the OP has a misbelief that the rules would be the same and should be made clear that they are different.
Now the talk seems to be on Tax Free Childcare account, instead of childcare vouchers.
The more talk of Tax Free Childcare account just confusing the real OP issue more.

Talking about Tax Free Childcare account and capital has taken the thread away from the issue the OP has.

Spoonie_Turtle

HillStreetBlues said:

Spoonie_Turtle said:

The OP is the one who started talking about the two schemes and what counts towards savings.  This is why none of us can understand what their actual issue is. 

The issue is just childcare vouchers,  the OP has a misbelief that the rules would be the same and should be made clear that they are different.
Now the talk seems to be on Tax Free Childcare account, instead of childcare vouchers.
The more talk of Tax Free Childcare account just confusing the real OP issue more.

Talking about Tax Free Childcare account and capital has taken the thread away from the issue the OP has.

Yes, because that's what the OP brought up to argue with the advice they were given in response to their original question.  The thread has moved away because that's where the OP took it.