TFC75200 | Compensatory payments: calculating the amount of compensatory payments

Childcare Payments Act 2014, section 62(1) and (2)

HMRC must pay a person a compensatory payment equal to 20% of the qualifying childcare costs which they have incurred, up to a maximum amount of the top-up they would have obtained. The result is that the amount paid will be equivalent to the top-up payments to which the person would have been entitled.