I'm just in the process of changing from childcare vouchers to tax-free childcare as a new job means dh isn't eligible for vouchers anymore. I'm not clear on how the tax-free scheme actually works. I have set up accounts for the two dc but I can't find any info on what to do next. If my nursery bill is £500, how much should I transfer to the online account? £400 and then they add 20% of total bill so £100 so I then have £500 to pay nursery?
It says they pay max £500 every three months - should I transfer the full amount into my account even if that means 20% exceeds the amount the will pay or should I should I pay the excess direct to the nursery?
Any help much appreciated!