Tax free childcare account

[everdaymumma]

Hello,

Wondered if anyone had any experience with the tax free childcare accounts?

We have just applied for an account and I was wondering what the best tatic is. Would it be best to aim to for the full £500 top up every 3 months from the government even though this is currently less than we need to cover our childcare needs?

What would happen with excess money in account at point of closing? Im assuming your 20% top ups would be removed?

TIA x

I’m interested in following this post! I’ve been looking into it - some months our childcare will be different amounts to others - if you overpay can you use extra for after school clubs or activities or late pick ups at nursery etc? I find it all a bit confusing my LO is due to start nursery end of Feb so would appreciate any advice on this too! :-)

If your circumstances change or you no longer want to pay into the account, then you’ll be able to withdraw the money you have built up. If you do, the government will withdraw its corresponding contribution.

You can only use it to pay for registered childcare so you will not be able to use it pay for activities Etc. But childminders, nursery’s, preschools, before and after school etc.

That’s really helpful thank you!

I sometimes overpay, sometimes under depending on what’s in the account. Once little one finishes nursery I will have to pay for breakfast and after school club so can just change provider. You can put in more than £500 every 3 months. I put in £600 every month to pay £800odd fees.

Thank you that’s great x

Thank you thats really helpful. X