Tax-Free Childcare: Backdating

Claims for tax-free childcare cannot be backdated to start from a date earlier than the actual date of claim.

Where the claimant makes their re-confirmation declaration late i.e. after the start of the entitlement period that the re-confirmation relates to, HMRC may not determine whether the declaration is valid until 7 days after the declaration was made or such earlier time as HMRC allow. If a late declaration is made, qualifying payments can only be made for the remainder of the entitlement period after the day on which HMRC determine the declaration is valid.

This appears to mean that any payments paid in before HMRC have made that determination will not attract a top-up, but it also seems that top-up payments will not be restricted in any way. The exception to this is where the declaration leads to termination of a tax credit award or the person is subject to an assessment period under Regulation 21 of the Universal Credit Regulations which overlaps with the entitlement period. In those cases, the relevant maximum for the entitlement period is pro-rated.

Last reviewed/updated 1 July 2022