Tax Free Childcare Nanny

[JWood92]

Hello

We currently have a nanny looking after our daughter a few days a week and she has recently become ofsted registered allowing us to use the tax free childcare scheme. However we have also recently had a second child whom the nanny is also going to be looking after.

My understanding is that we can set up two separate childcare accounts for each of our children via the tax free childcare scheme which each then get topped up with the 20% up to £2000 a year limit. However does anyone know how we go about paying our nanny for this? She would usually just send a joint invoice for both of the children as her hourly rate is for the children together and not per child.

Thank you!

You would need a breakdown of how much it is for each child. Failing that just divide the total by two, assuming both children are doing the same number of hours.
You'd have one tax free childcare accout but with two pots of money in it that are topped up and paid with separately.

The nursery for my children send a joint invoice and I just split it in half.

Works out better because the baby's rate is higher, so means the 20% spread further 👍🏻