Tax free childcare

Hi, you register at the government website and if you meet the criteria - which are outlined in the process of application - you’ll be able to set up a tax free childcare account to pay your daycare. You need to make sure they are also registered. For the application you’ll need your NI, annual gross salary and year you started working. If your partner lives at the same address as you, you’ll need to make a joint application so you’ll need their details too. The way the account works is that every time you pay in money into the account, the government will add 20% of that sum. So for example if you pay in £600 the account will show £720. The maximum quarterly government top up is £500, so £2000 a year. If you withdraw money you lose the top up and you can only withdraw what you paid in. You pay the childcare bill directly from that account. Every three months you will need to reconfirm that you’re still eligible. That’s it in the nutshell ☺️

Thank you so much, that’s really helpful.