Does anyone understand the Government tax free childcare scheme?

[ClareC]

I have received a letter from my daughter's nursery requesting I choose sessions for next September. She will be 3 in July, we will become eligible for the 15 hours childcare which I believe is universal regardless of circumstances. There is also information on 30 hours, and a tax free scheme.

We have two older children too and have a full time nanny - does anyone know if any of the schemes can be used to contribute to paying for our nanny?

All schemes other than the 15 hours free appear to have ?100k income cap per parent. This (I believe) is all income not just salary. I am assuming this cap is gross but am I correct in thinking that two parents both earning ?99,999 pa can benefit from the schemes (ie family income just shy of ?200k) but if one parent earns over ?100k the family is excluded.

At what point is the income assessed? It can change....

my daughters nursery can't afford to offer more than 5 places given the pittance the government pay (and the fees have gone up for everyone else (most of which would be eligible themselves for the 30 hours) as a result of the 5 places to be offered). wondering whether the entitlement (whatever it is but assuming definitely 15 hours can be used to pay towards the nanny........

Anyone out there understand how this all works? Seems I have the weekend to work it out as the form needs returning Monday!

Thank you

[alex_b]

I believe that nannies are only eligible if they?re OFSTED registered (same with using childcare vouchers).

[Sonners]

We pay our nanny through the scheme (she is Ofsted registered). You can also use it for holiday clubs if they are registered. We started using the scheme in April as part of the trial and the whole system is a massive headache, I?ve spent so much time on the phone sorting out problems! But the benefits are good depending on your circumstances and long term we are better off than on childcare vouchers. If you have three children then you can get up to ?6k benefit a year if you fully fund the account for each child.

Your income needs to be under ?100k each as you say to qualify. You reconfirm eligibility every three months online. Both parents must work 16+ hours a week.

[edanna]

Whether childcare vouchers or the new scheme is better for you will v much depend on your circumstances - you need to work this out quickly so you don?t miss the date for the childcare voucher scheme, which is closing to new entrants. This is a good explanation: https://www.moneysavingexpert.com/family/childcare-vouchers

I?ve worked out I?m better off on the voucher scheme, especially because my kids are older so I wouldn?t benefit from the new scheme for long.