randeep90
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Tax-Free Childcare - Do I need to declare it and pay high income charge?
Hello, I have just realised my accountant filed last year's tax return showing benefit I availed through Tax-Free Childcare - where, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider - as High Income Child Benefit Charge. My total income for the year was under 92k and my partner earned almost half of that. Both my and my partner are in full time employment (not self employed) and had no other source of income in that financial year except our employment. Because the tax was filed showing the amount I paid to child minders using Tax Free Childcare account as High income charge, I am having to repay it back in tax this year through PAYE. Just wanted to check if this is correct or it has been miscalculated?