Tax-free childcare £100k limit declaration question

DragonQ

I'm not really sure which forum is best for this questions so any suggestions are welcome.

My wife is getting a large redundancy package, which means she might earn more than £100k this tax year, depending on how long it takes her to find a new job. When reconfirming tax-free childcare I have to declare whether either one of us is "likely" to earn over £100k. I have no idea whether she's "likely" to or not, so what's the safest option here? I think that if we say "yes she's likely to earn >£100k", then we lose out and there's no way to claim it retroactively if she ends up earning <£100k. On the other hand, if we say "no she's not likely to earn >£100k" and claim the tax-free childcare, we can always return it later when she files her tax return if she earns >£100k.

Does this sound reasonable?

[Deleted User]

Have you disregarded the tax free element of £30000 of the redundancy payment in your considerations?

DragonQ

[Deleted User] said:

Have you disregarded the tax free element of £30000 of the redundancy payment in your considerations?

Yes. It depends on her new salary but she'll be over the £100k limit even with severe salary sacrifice if she gets a job within around 4 months.

sheramber

To claim tax free childcare you must both be working so if she is  not going to be working you will not be eligible for that period.

DragonQ

sheramber said:

To claim tax free childcare you must both be working so if she is  not going to be working you will not be eligible for that period.

If I understand correctly, this is only the case every 3 months when it's renewed, so it won't affect the whole year regardless.

sheramber

I did say you would not be eligible for the period she is not working.


It will depend on when she stops working and your entitlement period.

DragonQ

sheramber said:

I did say you would not be eligible for the period she is not working.


It will depend on when she stops working and your entitlement period.

I understand, thank you. It doesn't answer my original question though.

sheramber

DragonQ said:

sheramber said:

I did say you would not be eligible for the period she is not working.


It will depend on when she stops working and your entitlement period.

I understand, thank you. It doesn't answer my original question though.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/childcare-service-helpline