Tax free childcare - talk to me like I'm stupid

[N008]

Looking to use tax free childcare for the first time and finding it difficult to understand the process from the government website - probably because we don't fit into a neat little box (who does?!). Summary of the situation below - can I use tax free childcare for this? How do I get started?

Two adult, two child family. I don't work but I am a carer if that's relevant and receive carers allowance (£75/week). DH earns £55k/year. We've never used tax free childcare or vouchers or whatever - the kids had their free nursery hours and that's it. Now the kids are 9 and 6, I'm a SAHM hence not needing childcare previously. This year DS is desperate to do a week with Supercamps and it's £250. They accept tax free childcare (or they are registered or whatever) so that'll save us £50 right?! Is that how it works? Can we use it as a one off for one week like this?

How and when do we pay £200 in and how do we turn pay supercamps?

Hello, most people will use TFC for regular nursery or childminder payments but there’s no reason you can’t use it for this as far as I know. It’s sounds like you will be eligible so the best thing to do is apply on gov.uk. This will create a childcare account which you pay money into, and the government tops up - and the childcare provider gets paid from this account directly.

I use TFC to pay my DS breakfast/afterschool/holiday clubs. As above poster said - set up an account on gov.uk - you pay money into this and then the government tops it up (eg - you pay in £200, they top it up by £50 so there is £250 in your account) You then pay for the club with this account (exactly as you would do with a normal bank account) Once you're set up its very easy to use.

Great, thanks both. Sounds reasonably easy then. No chance that we could pay the £200 in and then the gov refuse to top up and we've lost the money?? How long between you pay in and they top up?

You won't lose the money. It's yours.

The top up is pretty instant.

Both parents need to be working to be eligible x

I'm not sure you are eligible. Usually both parents have to be working a minimum of 16 hours per week as it's meant to encourage parents back into work by making it more affordable. As A SAHM you wouldn't be eligible but not sure if there is some provision for carers though

Carers allowance is included - OP you will only be able to set up an account when you have been confirmed as eligible so you don’t need to worry about adding money and not getting the top up.

If you receive carers allowance, you are still eligible, as long as your partner also meets the requirements - which it sounds like they do.

Sign up via government gateway for a tax free childcare account (one per child). It can take a couple of days to be approved. Once it's set up, you pay in your £200. The government top up appears. You set up the childcare provider within your TFC account and pay them the £250.

Ooh, I didn't know that both parents have to be working. I imagine we will be entitled the same as we were entitled to 30 hrs childcare because being a carer (getting carers allowance) is treated the same as a full time job. Thanks for confirming that if it lets us register then we are entitled - that's reassuring.

Anyone can register initially, so just be wary. I'd maybe give them a call to discuss the carer thing with regard to it being classed as full time work. Otherwise you might have to pay anything back you get given.

Good Luck OP! It's a really amazing service and if you remain eligible you can use it until your children are 18.

If a school isn't registered they can be put forward and you can use it for trips/school dinners/school uniform (if sold direct through school)/after school clubs etc.

Just try to fill in the registration. It won’t let you create an account if you’re not eligible.

It’s a bit like online banking, you pay in, it tops up and you can see the balance. You then pay the childcare provider from that account.

You can also withdraw money back into your own bank account (without the top up of course). So no danger of you losing the money.

Wrong.

If you’re not currently working
You may still be eligible if your partner is working, and you get Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or contribution-based Employment and Support Allowance.
https://www.gov.uk/tax-free-childcare

Not true that anyone can register. Anyone can fill in the form but based on the answers they will do various eligibility checks before confirming that you are eligible - for example checking income, checking any benefits stated that you do actually receive them. There is no concept of paying back TFC.