Tax free childcare - what happens when 20% is over 2k

[bexyo]

Hi

Sorry I might be being a bit thick, how does this work? My nursery bill is £1,050 a month. As a result 20% will be over the 2k limit.

How much should I be paying into my childcare account as a result?

And does anyone know the processing time for applications? I submitted mine on the 20th and got a message to say I'll have a response in 7 days (didnt mention working days) but I haven't heard anything

I find it easiest to pay the whole bill monthly from the tax free childcare account. You can pay in extra but they only top up £2k of it by £500 per quarter. So if you are paying £3150 every three months, £500 will be the top-up, which makes your contribution £2650, or £883.33 per month. If you pay in that amount each month, they'll keep topping up by 20% till they get to that quarter's £500 limit.