Commentary

E1.716 Tax-free childcare—entitlement to top-up payments

Personal and employment tax

E1.716 Tax-free childcare—entitlement to top-up payments

E1.716 Tax-free childcare—entitlement to top-up payments

Top-up payments are made automatically provided1:

  1.  

    (a)     the person is eligible for the entitlement period

  2.  

    (b)     that person has made a valid declaration of eligibility for the entitlement period

  3.  

    (c)     the child is a qualifying child

  4.  

    (d)     the person holds a childcare account in respect of the child, and

  5.  

    (e)     a qualifying payment is made into the account in the entitlement period

Points (a)–(c) are considered below, points (d) and (e) in E1.717.

Entitlement periods

An entitlement period normally lasts for three months, although this is capable of variation by HMRC by up to two months (see below)2. The first entitlement period begins once HMRC confirm eligibility and they subsequently run consecutively. Where the first period begins or ends on 31st of the month, each subsequent period begins or ends on the last day of the month. Where the first period begins or ends on 29th or 30th of the month, each subsequent period begins or ends on the 29th or 30th of the month, except for February when it begins or ends on the 27th, or in a leap year the 28th3.

HMRC may vary the length of an entitlement period by up to two months on the opening of a childcare account or in order to align the entitlement periods of two account holders. In such a case the maximum qualifying payments, normally £2,000 (£4,000 for a disabled child)4, is apportioned up or down appropriately5.

Eligible persons

The following conditions of eligibility are applied as at

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial