Tax free childcare - how does it work

[duckling3]

Can someone help me understand how the tax free childcare account works please.

I have set up my account but not used it yet. I understand I pay in some, and then the government will top up , up to their limit. But if I put in say £80, will I see in the account my £80 + the government £20? And then I can pay the nursery invoice using the total balance?

I'm sure once I get going it will be simple enough but right now im not quite sure.

Yes that's exactly it. We get our bill, minus 20%, transfer the amount and then the government tops up the 20% we took off, you then transfer it to the nursery from the tax free childcare account.

Thanks 🙂

I use this website to work out how much to pay in.

taxfreechildcarecalculator.com/

Just times the invoice total by 0.8 to find out what you need to pay in.