Overpaying tax free childcare

[ButteredRadishes1]

Like most people I can get tax free childcare. My bill from Sept 2025 will be about £6k a year. If I pay the actual invoice than I won't be getting £2k a year "free money".

However if I do put in £2k a year than I will have a surplus

Do you think it's beneficial to just keep the surplus and it will work out good in the long run? It's a council nursery so don't get funded hours during term time and the summer bill is large

Thanks

You could overpay if you want to so you build up a surplus and can then use it to pay for nursery bills without having to fund it that month.

But if you want to take money out you can only either pay a registered provider or take back out what you put in, you can't take out the top-up as well.

So whenever you pay it in you can only ever end up getting as much top-up as you need to pay your childcare bills.

Ask your nursery to stretch your funding over the year so your bills even out.