Slightly complicated childcare scenario(3 Posts)
I'm not sure many people would have encountered a similar situation but any light that could be shed would be massively appreciated!
I have an (almost) 3 yo son with an ex partner. He is full time at nursery and I pay my contribution in 2 ways, the maximum childcare vouchers (£243) and then top up as a bank transfer.
She is a nursery manager at a sister location to the one he attends, as an employee gets some form of discount and I believe pays the balance of the nursery fees from her gross salary.
I'm due to change jobs middle of July and so I will have to end my childcare vouchers. I plan to open a tax free childcare account and pay the equivalent into there. However I understand that only 1 account can exist per household I can't find how this is defined anywhere. I'd like to know whether it matters, when I should open this account (before I start with my new company so it's ready?).
In addition the 30 hours free childcare, is that tied to the person who has the childcare account? So when I open an account, does that mean I need to sort out the free hours?
If there's anything I haven't considered I'd be grateful to hear about it as well. Thank you in advance!
Hi, the 30 hours and tax free are two different systems and not linked. If you and your ex partner are not living together I think you should both be able to have tax free account.The 30 hours would also be based upon the the person the child lives with and not your joint earnings as again you don’t live together if you go to childcare choices website that should be able to help. I do know you can not set up a tax free account until 30 days before you need it.
Each child has their own account, so you and your ex-partner cannot both have a Tax-Free Childcare account as you would have the same child on both accounts.
If you and ex-partner cannot decide who is best having the account, then you can both apply and Tax-Free Childcare scheme will decide for you. I think I would avoid that... so decide between you who should have it based on your custody arrangement.
Only one of you can have use the 30 hours funding... it has to be the same parent of the child who has the Tax-Free Childcare account.
It's all about the child... the child has one account, they can't be on two different accounts.
So when you leave your current employer, you will leave the voucher scheme and can then setup the Tax-Free Childcare account.
Your son is eligible for 30 hours funding from when? Birthday before 31st August, then you can apply for the 30 hours code now but it will expire after 3 months, so I would wait till nearer end of June and apply so you can use in September and renew the code again end of September - you need to renew the code every three months.
I would do it all at the same time... as leaving mid July, then applying towards end of June will be fine. Setup the Tax-Free Childcare and 30 hours account at the same time. You can then continue using vouchers from your July pay (if you get a voucher) and any current you have which are unused. Then use the TFC account to pay nursery mid-end August.
Best guide is this one: www.gov.uk/tax-free-childcare
Bottom of that page it says "You and your ex-partner need to decide who should apply if you are jointly responsible for your child."
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