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Tax free childcare to UC
Am aware that a claimant cannot claim tax free childcare and UC at the same time.
Can anybody enlighten me on what happens when a claimant with a tax free childcare account claims UC.
Does the tax free childcare account get closed automatically or does the claimant have to close it?
What happens to the money in the account? Is the claimant still able to access the account and use existing money in it to pay their childcare provider?
See http://data.parliament.uk/DepositedPapers/Files/DEP2021-0835/152_Tax-free_childcare_V6-0.pdf
It includes the following information:
[ Edited: 22 Dec 2021 at 11:28 am by Charles ]After claiming Universal Credit, claimants with a Tax-Free Childcare account:
- must not reconfirm eligibility for Tax-Free Childcare when they receive the Her Majesty’s Revenue and Customs (HMRC) reminder
- will have their Tax-Free Childcare account become ‘pay only’
- must withdraw or use any remaining money in their Tax-Free Childcare account within two years of claiming Universal Credit[...]
In a limited number of cases, some claimants moving to Universal Credit from tax-free childcare will temporarily receive 105% of their childcare costs in support from the two schemes, 85% from Universal Credit and 20% from tax-free childcare.
Parents in receipt of Universal Credit will be able to use any money in their online tax-free childcare account for up to two years after they cease to qualify for the top-up payments.
Thank you, Charles. Exactly what I needed to know.
(I did a quick search before posting this morning but didn’t think to check the Deposited Papers.)
Thanks too for all your helpful posts throughout the year.
No problem at all, and thanks for your many very helpful posts too.
Hope you have a good break!