Tax free childcare ?? Confused

[Greygoose21]

Hi all,

I set up my tax free childcare account a few weeks ago and today I transferred just £1 to make sure I’d entered all of the details correctly and that it would actually reach the account from my online banking. So on the gov website it says for every £8 the government will give you £2. Meaning 20% right. I have just logged onto the account and it shows my £1 and then a government top up of 25p. I’m no mathematician but that’s a 25% top up ?
Anyone had this I’m confused haha.

Thanks

£2 Is 25% of £8.

% are different when they are added on and when they are as a proportion of the new total.

£10 Is the final product. £2 Is the freebie. £8 Is the original amount paid.

So the freebie is 20% of the final product but is 25% of the original amount paid.

Thanks but still confused 😂 it also says your entitlement is a max of £500 every three months but on my account it says I have £600for this entitlement period ? Again number are not adding up to me, I’m going to have to ring them tomorrow. 🤦‍♀️

Thanks but still confused

Imagine you have £100. What is 10% of that? Its £10. So that leaves £90.

Now imagine you have £90 and want to add 10% on. What is 10% of £90? It's £9. So that totals £99.

What @BernadetteRostankowskiWolowitz said: £20 is 25% of £80. £25 is 25% of £100.

Regarding your second question, the entitlement period is normally 3 months. With a maximum of £2000 for the year per child this is where the normal £500 comes from (£2000/12 x 3).

The entitlement period can however vary and as you have just opened your account this is your first entitlement period. Based on the figure you quote (£600) I assume that this is the case for you. When you move into your next entitlement period this is likely to change to the standard £500.

Hope this helps.