Redundancy & Childcare

[gigi556]

I'm at the end of my maternity leave and I'm being made redundant. My last day of employment will be the end of April.

Will we still qualify for tax-free childcare, if I'm not working? I'm looking at the government website and it looks like I need to be signed up to job seekers to get the tax-free childcare?

I am considering going self-employed, but I haven't made any inroads with this yet. I was hoping to get to the end of May, put DS in childcare from June and then start working out a plan.

It will be my partner that is paying for the childcare, so I guess he needs to apply for the scheme. Do they require any paperwork? Or what will they ask for when you apply?

My understanding is that you are not able to signup for Tax-Free Childcare unless you will be working within 30 days of signing up.
I don't think Job Seekers allowance counts.
You are though eligible whilst on maternity leave, so I wonder if you could sign up now... then hope to be in a job in three months time when you next need to reconfirm eligibility.

You would be eligible being self employed and don't need to meet the minimum pay criteria for first 12 months, though I think you do need to provide some estimates.

The application process is entirely online and checks are made of electronic systems generally. If you are well known to the tax authorities then you may go through eligibility check quickly. If they cannot find information they need electronically, then they will contact you to request information.

1. Make sure your partner is eligible - earns under £100,000
2. Make sure neither of you are claiming Working Tax Credit, Child Tax Credit, Universal Credit.
3. Make sure your partners employer does not provide childcare vouchers - as if they do, you may be better off using those depending on your childcare cost.
4. Apply before you are made redundant - as I think you may well be eligible right now but may be non-eligible come end of April.
5. When reconfirming three months later, you need to have an income or a projected income from self employment.

Estimate what your childcare costs are likely to be. If they are low (under £2500) then childcare vouchers may be better if your partners employer offers the scheme. This calculator may or may not help to determine which schemes are best given your circumstances: www.gov.uk/childcare-calculator

Thanks so much for your reply. Will it be easier if my partner applies rather than me or does it make no difference?

I've asked him to ask his employer about the vouchers but I know he hasn't done it yet!

I don't think it makes a difference as it is a joint application.