Active discussions

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

HMRC suddenly refusing us tax free childcare when nothing had changed

32 replies

Maternityleavelady · 19/01/2026 21:06

Our salaries haven’t changed and out of the blue (after 5 years of tax free childcare), HMRC have said we no longer qualify because they don’t think we will earn the required £846 per month. We have sent them our bank statements and payslips showing historical earnings and confirmed that nothing has changed. They confirmed again that they don’t think we will earn enough. The reply says if we want to appeal we have to go to court!

Is this their attempt to save money? Are they using AI and the algorithm is all wrong? Has anyone had the same issue and successfully had the decision over-turned?

OP posts:
EsmeSusanOgg · 19/01/2026 21:40

From GOV.UK - https://www.gov.uk/tax-free-childcare/check-if-youre-eligible

You (and your partner, if you have one) must each expect, over the next 3 months, to earn at least:

  • £2,539.68 before tax if you’re aged 21 or over (the same as £195.36 per week)
  • £2,080 before tax if you’re aged 18 to 20 (the same as £160 per week)
  • £1,570.40 before tax if you’re under 18 or an apprentice (the same as £120.80 per week)
This is the National Minimum Wage or Living Wage for 16 hours a week on average.

National Minimum Wage and National Living Wage rates

The National Minimum Wage and National Living Wage rates: age, apprentices, previous years.

https://www.gov.uk/national-minimum-wage-rates

Jellybunny56 · 19/01/2026 21:38

PetPeevert · 19/01/2026 21:35

Can you ask them for a breakdown of their decision and clarification on what the criteria is and why they have decided that you don't qualify?

This.

I’d ask for the information they have based their decision on if you have already provided clear evidence to show your earnings.

EsmeSusanOgg · 19/01/2026 21:38

Barrenfieldoffucks · 19/01/2026 21:33

What do you mean? The OP doesn’t say anything about how much they work, so I assumed full time?

Show quote history

The lower earning threshold is based on earning minimum wage working 16 hours a week.

PetPeevert · 19/01/2026 21:35

Can you ask them for a breakdown of their decision and clarification on what the criteria is and why they have decided that you don't qualify?

Barrenfieldoffucks · 19/01/2026 21:33

SalmonOnFinnCrisp · 19/01/2026 21:32

If you work that little why do you need childcare...?
Geniune question

What do you mean? The OP doesn’t say anything about how much they work, so I assumed full time?

SalmonOnFinnCrisp · 19/01/2026 21:32

If you work that little why do you need childcare...?
Geniune question

FatFoxie · 19/01/2026 21:27

How much are to likely to earn? Has th threshold changed?