Changing from childcare vouchers to tax free childcare

[Sunday89]

Hi, currently in the process of changing from childcare vouchers scheme to tax free childcare scheme to pay our nursery fees.
Our fees have gone over £10,000 per year and online calculators suggest the new scheme would save us more than vouchers.
Myself and DH have cancelled our vouchers and I’ve set up the government gateway portal. Does anyone know how much I need to pay into the portal for it to be topped up enough to pay fees of £848 per month?
And if I was to transfer money in, how quickly does it get topped up? Will it be hours or days?
Thank you!

Hey OP, we use the tax free childcare portal every month, when I deposit the money, it gets topped up by the government 20% instantly! So it isn't always days. Our fees are the same as yours and we are saving over £150 per month 👍

newmum that’s a brilliant saving! We both get paid on the 25th of the month so was hoping to transfer the money in on that day, then our fees are due to nursery on the 1st of the month so hopefully this will leave us enough time... I’ve explained to nursery we’re changing over this month though so I think they’ll understand if it’s a day or so late!

@Kethy vouchers come out of your pay before tax and NI so you save 32% as a 20% taxpayer and between £52% and 42% as a higher rate taxpayer on vouchers but are capped at £243 per parent per month for 20% taxpayer and £124 per month for 40% taxpayer. The government scheme is just 20%.

Vouchers are still best if you are a basic fare taxpayer and your fees are lower than £243 per month :)

@newmumFeb17 the top up shows instantly but if you check total balance on previous page it doesn't show for up to 2 days as available.

I know it’s been a while since this thread was last updated, but I’m looking at transferring to this scheme in the new year as we are having a second baby. I have read a lot on this, but have questions I can’t find the answers for and would be grateful if anyone is able to help.

1. Can one parent be in the tax free childcare scheme and the other in vouchers? I’ve read conflicting things on this.

1. Can you save up the money in your tax free childcare account and maybe use that against a different child? Baby number 2 isn’t here yet, but DS1 is. DS1 fees are minimal as we only pay for after school club, whereas new baby fees will be £1000 a month.

1. Do they need proof of nursery fees?

1. If I were to put £800 in each month, but didn’t use that for a while, would they continue to add the 20% up to £500 every three months?

Sorry for my questions don’t make sense, but tried my best to put down the jumble which is in my head!

Thanks.

1. No if you open a tax free childcare account neither parent can use vouchers.
2. No you cant transfer money to another child as the account is per child. You dont have to use it immediately but it must be used for that child.
3. Not as far as I am aware. You have to pay an Ofsted registered provider though who is registered for the scheme.
4. Yes. But you must use it for that child and before they age out of the scheme.

Basically I’d like to put in £800 a month even though baby will be doing one day and use the free £200 to put towards their full time fees when the time comes, but not sure if that’s possible.

Thanks @RicStar that’s really helpful.

Tax free child care and 30 free hours are the only things I appreciate Theresa May for.

@shartsi I presume you don't have any younger children? 30 free hours has pushed up prices for everyone not on the 30 free hours, as with all things, some people benefit while others lose out. It certainly doesn't help those families who could barely afford childcare after maternity leave.