Tax Free Childcare

[rob0282]

Hello all,

I am looking at the Tax Free Childcare account you can set up with the Government and was wondering if someone might know the answer?

The little one isnt starting nursery until April - am I able to start topping it up now? - we have picked out a nursery etc and would like to start saving up for the first couple of months fees so we are a bit ahead.

Thanks

Yes you can

Check the eligibility section of the government website - you can’t do it yet if you’re still using parental leave so depends on your circumstances.

www.gov.uk/help-with-childcare-costs/tax-free-childcare

With a new baby, my understanding is that you can only apply within 31 days of going back to work, so you could apply in March.

Start putting the money aside in a savings account now. Then transfer up to £2000 into your childcare account when it is created, so you get the max £500 topup that quarter. Then three months later, put in another £2000 and keep going like that.