Earnings threshold for 30 hours free childcare and going over this

[ProudFatherMe]

Hi all,

I was wondering if anybody could provide advice on the government’s 30 hours free childcare assistance and what happens in the event you end up earning over the £100,000 threshold later in the tax year.

My son is currently in nursery and is due to start primary school in September 2024, so I will only be using the benefit for the next 6 months anyway.

Currently I earn around £95,000 per year, so just about within the £100k threshold, however at the end of 2024 I am due to receive a loyalty bonus from my employer of around £30,000 which will take me over the £100,000 threshold later in the tax year. But when I receive the bonus and go over the threshold, I won’t be using the government contribution anymore.

So for the period I will be using the government assistance, my earnings will still be within the threshold and will only go over after I have finished using it.

So basically, if I was to go over the £100,000 threshold after I finish using the benefit, would HMRC ask me to repay the money I have used between April 2024 – September 2024?

Would they even realise this or will they stop assessing my eligibility in September 2024 when I finish using it?

If I do need to pay it back, when would I need to repay by?

Has this happened to anybody else?

If anyone can provide advice it would be greatly appreciated.

Thanks

[solarised]

It's based on quarters. So if you are going over during a quarter you can't apply

[ProudFatherMe]

@solarised

It's based on quarters. So if you are going over during a quarter you can't apply

Thanks. If I go over in quarter 3, will I have to repay the funding I have used in quarter 1 & 2?

[Snozzlemaid]

So if they find you eligible you will be given a code.
This code has a start date, end date and grace period end date.
The code will be valid for 3 months and you then have to reconfirm your details.
If you are found to no longer be eligible when you reconfirm at any point, the dates on the code will no longer be extended.
So your code will run out and funding can then only be paid to the grace period end date.
You would not need to repay anything for the funding that has been paid, as you had a valid code at that time.

[Snozzlemaid]

Looking at your situation, as you only need the funding for the summer term. If you get a code now before the end of March you will have a grace period end date of 31st August anyway so that will last you until your child starts school