Tax Free child care and child Benefit together

[Fishjo1960]

Hi, Can anyone help.

My daughter and her partner have good jobs and do not get any benefits. They have 2 children and think that if they apply for tax free childcare at the baby's nursery, that the child benefit will be cut so there is no point.

Is this true? I thought child benefit was not affected unless you are high earners?
Would be so grateful for advice as can't find clear info on the web.

Do they mean cb or tax credits (which go towards childcare costs).

I don't believe Child Benefit and Tax Free Childcare interlink.

Tax Free Childcare isn't income and therefore won't count towards the income cap for Child Benefit. You pay Tax Free Childcare into a special account, the government top it up, then you use it to pay for childcare directly from the account.

No - the guidance is really clear about what is affected eg tax credits, vouchers. CB isn’t on that list.

No they aren’t linked

Nope - I have both - they're entirely separate.

CB okay as long as neither earns above £50k gross after pension deductions (taper applies £50k - £60k)

Tax Free Childcare - I forget the earnings limit but it's high - well over the CB threshold but both parents have to be working.

Tax Free childcare has enabled me to get a cleaner - it's fantastic.

I have both - they are completely separate.

Thanks everyone

I have both too.