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Tax Free childcare - how do you work it?

2 replies

WhenLifeGivesYouLemonsx · 05/02/2019 10:06

I've just signed up to it but I'm confused as to how to work it. My childminder is already on it so I've added her so it is just the case of adding money to it now.

Because the gov puts money towards it, do I put the full amount in? So if I pay my CM £1000 a month, is that how much I actually put in? When the government puts their share of money in, will that go to the CM?

I really don't know how to work it or how to calculate it so it adds up to £1000 which is the CM invoice each month!

Help! Lol. Thank you in advance :)

OP posts:
Are your children’s vaccines up to date?
nannynick · 05/02/2019 11:19

Pay money in using debit card, that seems to clear the fastest.
Topup is max of £500 per three month period per child. You could pay in the amount you will be paying, minus 25%. As the max per child is parent paying in £2000 per three months and Gov topup of £500. £500 being 25% of £2000.

It takes time to pay your childminder, allow at least 4 working days. Do not use the system after 3pm on a Friday as nothing is processed over the weekend, or on bank holidays.

nannynick · 05/02/2019 13:02

How many children do you have? If £1000 is childcare cost for one child then I think the simplest way to do it would be:
Month1: £800 paid in, £200 topup = £1000 to pay out.
Month2: £800 paid in, £200 topup = £1000 to pay out.
Month3: £900 paid in, £100 topup = £1000 to pay out. £100 topup is due to having reached the £500 3 month topup limit.
Then repeat the sequence.

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