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Can someone explain to me how the tax free childcare works?

2 replies

Geneshish · 27/01/2020 14:50

So I've logged in. Put in to the account the amount of money that I'm due to send my childcare provider. The government has very nicely topped it up with the tax. So I've now got more than I'm supposed to pay the childminder in the account.

So what was I supposed to do? put in the amount I'm due the childminder minus the tax? Can I rectify this mistake?!

OP posts:
pinknsparkly · 27/01/2020 14:55

I'm not sure it's possible for you to remove your money from the account, but you can pay the childminder the amount you owe them, and use the tax back from the government towards your next payment to the childminder.

I believe the system is set up to allow people to contribute money to their account in which ever way works best for them. So that could be a lump sum once a year when they get a bonus or weekly/monthly contributions when they get paid. You can then use the account as a savings account, building up the money in the account until you need to pay your childcare care provider.

LutherRalph1 · 27/01/2020 14:59

You still have to "make" the payment to childminder, is click the button ( unless you've set it up automatically) and any money over the amount you pay, just sits in the account to be used next time

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