Am I eligible for tax free childcare?

[Lagirl20]

Hello! I am hoping to get some help understanding tax free childcare. I earn £51K and partner earns £42K annually pre-tax. I assumed we wouldn’t be eligible for tax free childcare but it looks like we might actually be?! We’re paying nursery fees of £900 per month. Does this mean we can save 20% of the cost of this each month? Can someone please explain how it works, will one of us be taxed less? Thanks

Fill in the form on HMRC and it tells you right away if you’re eligible or not. From memory it doesn’t take long.

if you are then you upload money to your holding account, find your nursery on the system and when you get your invoice transfer the money to them. The government put so much on your holding account too.

Yes you will be eligible, threshold is 100k per parent.

You can save up to £500 per quarter, so around 166 pcm.

if you pay in £750 they’ll top you up 20% / 150 which makes £900

Yes you're eligible. The 100k limit is for one person's salary, not combined. Apply straight away!

Yes you will most likely be eligible if both parents working and earning more than the equivalent of 16hrs @ minimum age.

The cap is £100k/parent

Like others said, yes you'll be eligible.

When it's up and running it's really simple. Instead of paying your childcarer direct, you make a bank transfer to your childcare account. For every £80 you put in, the Government put £20 in.

So you get a nursery bill of £400. You pay £320 into your childcare account. Government pays £80 in. Then you have £400 to send to your childcarer from your online account.

it's £2k limit per quarter per child so they'll top up £500 and then the remaining £200 (in month 3) would be 100% rather than 80%

Could someone clarify what happens if one parent is over £100k and one under please?

@Lou573 If one is over 100k you’re not eligible.