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Original poster

Tax Free Chilcare Payment - Net or Gross?

5 replies

jahi · 22/09/2018 20:09

Hi

I have signed up to the tax free childcare scheme, and have stopped my salary sacrifice payment through my employer.

I have gone onto the government website to set up my first payment to my childcare provider, and I think I should be entering the net amount, i.e before the government adds their 20%, but am just not sure.

So if I need to pay the nursery £500, I think I should be paying £400 into the government account, and the government will add £100 on top and the childcare provider will then get their £500.

A google search hasn't helped much. Would appreciate advice from anyone set this up already. I think it should be the net payment, but just can't be sure!

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nannynick · 22/09/2018 22:02

Timescales are important. You put the money in, so say £400 and when that clears the topup is added £100. (As max topup per 3 months is £500 on £2000, so topup is 25% of what is paid in,£500 is 20% of £2500.)
Then you make payment to provider, which will take 3-4 working days.

So good that you are doing this now if payment needs to be with provider by end of month as it may make it in time.

Original poster
jahi · 22/09/2018 20:24

Thanks originaldoozy! Appreciate the tip -I thought it was automatically paid to the childcare provider, so thanks for the heads-up!

OP posts:
originaldoozy · 22/09/2018 20:19

Oh and just to say that the childcare provider won't then automatically get that, you have to then make the payment to them. The government 20% gets added immediately in my experience.

originaldoozy · 22/09/2018 20:18

You are correct OP!

GeorgieTheGorgeousGoat · 22/09/2018 20:12

No you’ll get £80 if you put in £400.