Tax free childcare

[tonyro]

Does anyone know about the tax free childcare/20% off child care costs? Our combined income is £60k but this will drop to about £54k since I'm only going back to work 3 days. We already get the child benefit £84 every 4 weeks but I'm not sure how the tax free childcare works even after reading about it as I heard it was only for full time workers (a few friends told me this) and I'm only going back 3 days, but my partner works full time? Anyone have any idea if we would get both or not? I don't want to apply for it if it will affect of cancel our child benefit.

It's not only for full time workers, we use it and I'm part time. You just have to earn over minimum wage and under £100k (that's for each of you individually.) MSE website has a good explanation of it.

Thank you, and it doesn't affect child benefit?

You would be entitled to it as long as you’re both earning over £152 each per week, and no, it doesn’t affect child benefit. It’s quite easy to set up an account which you then upload money to and the 20% is added to it. You then pay the nursery from the account. You can apply for the free 30 hours over age 3 from the same account. There is a maximum amount you can claim the 20% on which I can’t remember off the top of my head, but I never reached it on 4 days nursery per week so it’s quite high.

No it doesn’t affect child benefit.
it lists all the eligibility criteria here:

www.gov.uk/tax-free-childcare

Does anyone know how the scheme works when your child turns 11 and is no longer eligible? Can the funds you have in their pot still be used for childcare after the point you can no longer contribute into the scheme for them (i.e to pay for things wheh they are 12)? I can't find anything online that confirms on this

Hi my understanding is you can use the vouchers until your child is 16, to pay for approved childcare provision, clubs that accept the vouchers.

OP, you don't need to worry about losing your child benefit - the only thing that would affect it would be if either you or your partner started earning more than £50k/year (individual salary not combined).

To get TFC, you both need to be earning the equivalent of 16h/w at NMW over 3 months as a minimum. So not full time at all.

All the info is at www.gov.uk/tax-free-childcare

Do you rent or own your home? Just wondering if you might be eligible for childcare help via UC, and housing costs would be relevant.

Thanks @Jagsy . I can't find any details confirming either way online

Hi, I tried to find the info, but realised that I have been in a Scheme through my employer for over 10 years, which isn’t available for people to join now. My scheme is through Edenred but I don’t know what the new process is. Sorry

You are talking about childcare vouchers.
Tax Free Childcare is a different scheme with different rules.

@Jagsy I currently use child care vouchers too but looking at if I would be better moving to tax free childcare as I have an 8 month old and 10 year old

Hi, so you are part of a scheme through your employer? Mine is too, and it’s been tax free, so is yours not taken from your salary before tax? That’s how mine has been, my dd is now 13 and we still have an amount left which they told me I can use until she is 16.

Ahh ok thanks, didn’t realise.

There is a calculator online you can do to tell you. Money saving expert has one.

I'm around £900 better off in tax free childcare. I also prefer it because you can see the cash the government puts in!

@Thebeastofsleep thank you I'll take a look. My son has just turned 10 so I'm a bit worried about not knowing if you can use funds in their childcare pot after their 11th birthday as I can't find any answers for this online. It will work out better for my 8 month old DD though