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Official guidance
Tax-Free Childcare Technical Manual

TFC35000 · Qualifying payments: contents

  • TFC35100 · Qualifying payments: introduction
  • TFC35200 · Qualifying payments: maximum amount of qualifying payments
  • TFC35300 · Qualifying payments: calculating the top-up element and the maximum amount
  • TFC35400 · Qualifying payments: variation of maximum top-up when a child is no longer a qualifying child
  • TFC35500 · Qualifying payments: variation of maximum amount following termination of a tax credit award
  • TFC35600 · Qualifying payments: variation of maximum amount of qualifying payment and appealable decisions
  • TFC35700 · Qualifying payments: variation of maximum amount of qualifying payment and delay in payment of allowance
  • TFC35800 · Qualifying payments: variation of maximum amount of qualifying payment and residents of a prescribed state
  • TFC35900 · Qualifying payments: variation of maximum amount of qualifying payment on the death of the account holder
  • TFC36000 · Qualifying payments: variation of maximum of qualifying payment amount because of infrastructure failure
  1. Qualifying payments: contents
  2. Qualifying payments: variation of maximum top-up when a child is no longer a qualifying child

TFC35400 | Qualifying payments: variation of maximum top-up when a child is no longer a qualifying child

From HM Revenue & Customs · Tax-Free Childcare Technical Manual

Childcare Payments Regulations 2015, regulation 12(1)

If a child ceases to be a qualifying child during an entitlement period, the relevant maximum top-up for that entitlement period is determined in accordance with the following formula:

X × A ÷ B, where X is, in the case of a disabled child, £4,000, or in the case of any other child, £2,000.

A is the number of days beginning on the first day of the entitlement period and ending on the day after the day on which the child ceases to be a qualifying child. B is the total number of days in the entitlement period.

Example

Stephen is a disabled child. He ceased to be a qualifying child as he exceeded the maximum age on 27 May 2018. The entitlement period runs from 18 April 2018 – 17 July 2018. Stephen would still receive the full 3 months entitlement and top up would be prorated for the period when he was a qualifying child.

£4,000 x 47 (number of days up to and including 28 May 2018) ÷ 91 (total number of days in the entitlement period) = £2065.93. This is the maximum top-up that is payable in respect of Stephen for the entitlement period 18 April 2018 – 17 July 2018.

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