Tax-Free Childcare Account
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Put the £1,114.10 into the childcare account.
@Fatima aww thank you! That’s really helpful x
Put the full amount. Otherwise you'll get less. Otherwise it will work out 20% of 1,114 instead of 1,392 and it needs to pay the full invoice. It basically works as a bank account with a standing order going out but it gets topped up by the govt. That extra money they add you can use or withdraw into your normal bank account. Always add and instruct to pay the full invoice amount. We use ours as a savings account to save up the extra added on then when we've had a month where we'll struggle to pay it we've added less and used the money in there so it's less out of our pay packet that month
@Bethan thank you so much! Really appreciate it - you’ve explained really well x
I sometimes do the full amount and then after a few months I have enough in the account that I don’t have to transfer money into it.
I started by putting a bit more than the full amount in to get the most extra added from them for that quarter and then continued to put either the full amount or near enough for a few months and then after a few months you end up with extra so you can pay a whole month with out having to use any from your pay that month. I also actually over pay the nursery too for the same effect as half terms cost more so when them months come with a half term in I don’t feel the incline of pay that month because I’m in credit with them anyway
Your fee is at the higher end so it’s up to you how you want to use it if you want a cheaper month out of your quarter or want to know you have a consistent bill each month but you won’t miss out on your full entitlement and don’t gain any extra from it regardless how you try to work it. The only way you wouldn’t get the full £2000 per year is if your combined invoices over a three month period weren’t high enough to be entitled to the full amount x
I would pay in £1225.96 every month and they will top up £166 then you know your bill is consistent each month and you’re getting your full £500 per quarter. Thats what I did when my invoice amounts were the same. But you can’t withdraw money you haven’t paid in (I.e. their top up) which I think someone else has referred to x
Enter the full £1,392.62 to pay to the nursery. The system adds the 20% top-up automatically. However, you need to deposit at least £1,114.10 from your bank account to your childcare account.