Tax Free Childcare

[haveuheard]

Is it just an average over the whole year of £131 a week or is there any allowance for people that work term time only? It looks like despite being on only just above 'average' income and incurring childcare costs to work we won't get any help with childcare now vouchers are gone.

Do you only get paid during term time? Or are you salaried? It mentions on the website about self employed people averaging out how much they earn over the tax year if their income fluctuates. Would that possibly apply for you?

I thought it was a max govt contribution of £500 per quarter, so £2k p.a. it's very confusing though as I don't know when a quarter starts for my account, and so I've been caught out a couple of times by not getting a top up where I've paid too much in. Much better to always pay in the same amount each month so this doesn't happen!

www.childcarechoices.gov.uk/guides/parents-eligibility-and-application/

Look at each 3 month period starting from when you will first claim. In that 3 month period (lets say October, November, December) will you earn at least the equivalent of NMW (for your age) based on working 16 hours per week. So for a 13 week period will you earn at least £1708?

If you work term time only then the biggest problem month tends to be August as if your pay is now split over the year you may have no income at all in August. So the 3 month period which includes August will be the period when you may not be eligible for Tax-Free Childcare if you do meet the earnings requirement for the other 3 month periods.

I think my pay will be split equally across the year so I will be £5.50 short per quarter. If I was only paid for the 9 months I will actually be working I would be well over the threshold.

Thanks for the link by the way @nannynick, that was the sort of thing I was looking for and couldn't find.