Tax free childcare

[pharmacoco]

Hi

I have a tax-free child govt account, whereby the govt tops up by 20% each month.

Each month I transfer £672 as my nursery bill is £840pm.

Can anyone explain why some months the top up is £168 and so the £840 is covered, yet this month it's been £164 which means the payment didn't process to the nursery as there was only £836 in the account

Thanks !!!

is it every third month? There’s a £500 per quarter limit on the government money so they pay less on the third month if you go over that.

I had this once I think it's to do with how many days there are in the calendar month so I just put an extra £100 in to be like a buffer amount and it's been fine since

I'd never thought of that but very good point

There is a maximum top up amount of £500 per quarter

Thank you all ! Completely unaware of the £500 max per quarter, will transfer some money as a buffer :-)

You need to reconfirm on the system every 3 months too or you won;t get the next quarter's £500 allowance

I find this calculator really helpful https://taxfreechildcarecalculator.com/