Tax Free Chilcare Payment - Net or Gross?

[jahi]

Hi

I have signed up to the tax free childcare scheme, and have stopped my salary sacrifice payment through my employer.

I have gone onto the government website to set up my first payment to my childcare provider, and I think I should be entering the net amount, i.e before the government adds their 20%, but am just not sure.

So if I need to pay the nursery £500, I think I should be paying £400 into the government account, and the government will add £100 on top and the childcare provider will then get their £500.

A google search hasn't helped much. Would appreciate advice from anyone set this up already. I think it should be the net payment, but just can't be sure!

No you’ll get £80 if you put in £400.

You are correct OP!

Oh and just to say that the childcare provider won't then automatically get that, you have to then make the payment to them. The government 20% gets added immediately in my experience.

Thanks originaldoozy! Appreciate the tip -I thought it was automatically paid to the childcare provider, so thanks for the heads-up!

Timescales are important. You put the money in, so say £400 and when that clears the topup is added £100. (As max topup per 3 months is £500 on £2000, so topup is 25% of what is paid in,£500 is 20% of £2500.)
Then you make payment to provider, which will take 3-4 working days.

So good that you are doing this now if payment needs to be with provider by end of month as it may make it in time.