Childcare less than tax free limits, worth overpaying?

Savesmartsunday

My childcare costs will reduce in September due to 30 hours funded hours. My child will be 2 in October. 

The "free money" form the government is temping but as my childcare fees will be much lower than the £2k a quarter I need to put in the account, is there any point? 

My nursery is council owned so 30 hours means 30 hours taken from the bill. Of course I will have 13 weeks a year that I need to pay full price. 

I understand that I can withdraw the money from the account but won't receive the tax free element 

Brie

If it's free money why not take it?

sheramber

Savesmartsunday said:

My childcare costs will reduce in September due to 30 hours funded hours. My child will be 2 in October. 

The "free money" form the government is temping but as my childcare fees will be much lower than the £2k a quarter I need to put in the account, is there any point? 

My nursery is council owned so 30 hours means 30 hours taken from the bill. Of course I will have 13 weeks a year that I need to pay full price. 

I understand that I can withdraw the money from the account but won't receive the tax free element 

Where does it say you need to pay  in £2k a quarter.? 

Savesmartsunday

sheramber said:

Savesmartsunday said:

My childcare costs will reduce in September due to 30 hours funded hours. My child will be 2 in October. 

The "free money" form the government is temping but as my childcare fees will be much lower than the £2k a quarter I need to put in the account, is there any point? 

My nursery is council owned so 30 hours means 30 hours taken from the bill. Of course I will have 13 weeks a year that I need to pay full price. 

I understand that I can withdraw the money from the account but won't receive the tax free element 

Where does it say you need to pay  in £2k a quarter.? 

Because you get £500 a quarter if you pay in £2k a quarter?

Savesmartsunday

Obviously a sliding scale 

Savesmartsunday

Brie said:

If it's free money why not take it?

Because it's only if my childcare is that much a year. So I can't work it out if it's beneficial or not 

sheramber

You do not have to pay in the full amount. That is the maximum you will get the top up on.

There is no minimum  amount b but you will only get the top up on the amount you pay 

Remember funding does not cover extras such as meals, trips etc. so you may still have to pay something  on funded days. 

You only need to pay in the amount you need to cover your costs or you can pay in a small amount more to build up a sum to cover the I funded weeks. 

Either way you get the government top up . 

Only you can decide if you want it or not. 

Savesmartsunday

Hi thanks for the response but I'm not sure if you understood my question. 

I'm asking if I pay in the maximum amount than IS It beneficial to me to have a Surplus?

Savesmartsunday

PGL camps accept tax free childcare so it is a surplus to overpay every month because I can use that free money further down the line I think