Tax Free Childcare for an 11 year old

slioch

My child has just turned 11, and by chance i noticed that the tax free childcare scheme only applies up to the 1st of September following the childs 11th birthday.  I use the scheme to pay for pre and post school childcare, and will need to continue that for the next school year.  It had never occurred to me that the scheme wouldn't apply, and am now facing a significant increase in costs that I had not accounted for.

My question is, can I load the account between now and the 1st of September to take advantage of the £500 per quarter, then use it to pay for childcare beyond the 1st of September, in effect still benefitting from the scheme?  I guess my real question is will the amount obtained from the scheme be claimed back after the 1st of September on any remaining balance in the account?

la531983

Surely if your child has just turned 11 they are in the process of finishing Year 6, and are starting secondary school in September - do they actually need "childcare" before and after secondary school? 

I would suggest the number of Year 7 pupils who are receiving "childcare" is very slim, probably also not really "cool" if their friends found out

slioch

Thanks for your reply.

by “childcare”, I mean an out of school club. Yes, it is ok to go to it, because a lot of my child’s friends go to it, and will continue to go to it. They will still be in primary school (p7, in Scotland).  

Given that I work some considerable distance from the school, which isn’t in the same village as where we live, then yes, for the next year at least, this is how it will be.

SplanK

I asked the similar question a few days ago 

https://forums.moneysavingexpert.com/discussion/6538478/tax-free-childcare-what-happens-at-age-11-from-sept

There seems to be no documented answer as to what happens (that have found at least!). 

My understanding is that any money left in the account unspent will have the 20% taken off at some point once they stop being elegable but can either be withdrawn or spent (without the extra).  

I know some childcare providers allow you to build up a pot of money for future use so sending a lump sum to them now via TFC might be a short term solution, as long as you trust the company running it as your money will be at risk/unprotected.  Best speaking to them first.

Elegable could be hitting 1st Sept after they turn 11, or parents earning too much.

As for childcare, yes just because they are on high school does not mean that we don't have childcare needs.  Parents still need to work and we can't just expect a year 7 pupil to be able to stay at home by themselves unsupervised for hours at half term!   In our case at least, the school my child is going to is open early at zero cost.

slioch

Thanks for your reply.  Seems like you are in a similar predicament, although probably able to pay the bills for both children from the same account (of the younger child).

anyway, I agree, can’t find anything obvious documented.  

sheramber

Tax Free Childcare helpline

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

slioch

Thanks.  I gave them a call earlier. Apparently any top up remaining in the account is reclaimed on the 1st of September following the 11th birthday of the child.  

SplanK

Thanks for clarifying

As for "although probably able to pay the bills for both children from the same account" - admittedly, the idea had run through my mind (or finding a friendly provider to provide low or nill cost to an older child, and double cost the other), but it's essentially fraud and has the potential to land us in hot water.  Very much not worth the risk.  From a quick google, it seems that they do keep an eye out for this behaviour or incorrectly (either accidentally or deliberately) declaring wrong information.

One helpful source of information:
https://revenuebenefits.org.uk/tax-free-childcare/guidance/how-does-tax-free-childcare-work/managing-a-tax-free-childcare-account/paying-for-childcare/

What childcare costs can be paid out of the childcare account?
Only payments in respect of qualifying childcare for the relevant child can be made from the account. If the claimant pays costs for more than one child, it is very important that they make sure that they are paying the correct costs out of the right account for each child. Money in an account for child one cannot be used to pay childcare costs for child two and vice versa, nor can money be transferred between childcare accounts.