As the February half term draws closer, families are being
reminded that they can save up to £2,000 a year on childcare
costs with Tax-Free Childcare.
More than 401,300 families used the scheme in September 2022 and
benefitted from the government paying towards childcare costs.
HM Revenue and Customs (HMRC) is encouraging families to find out
more about Tax-Free Childcare and check their eligibility via
Childcare Choices.
Tax-Free Childcare can help working families pay for any approved
childcare for children aged 11 or under, or, 16 if the child has
a disability – whether the child goes to nursery, a childminder,
attends breakfast or after school club, has holiday care or goes
to an out of school activity.
For every £8 paid into an online account, families will
automatically receive an additional £2 from the government.
Parents can receive up to £500 every 3 months (£2,000 a year), or
£1,000 (£4,000 a year) if their child is disabled.
Opening a Tax-Free Childcare account is simple and takes around
20 minutes. Money can be deposited at any time and can be used
straight away, or whenever it is needed. Unused money in the
account can be withdrawn at any time. Go to GOV.UK to register and
get started.
, Financial Secretary to
the Treasury, said:
Tax-Free Childcare can make a big difference to household budgets
and I urge families to make sure they are getting the help they
are entitled to.
It is a simple process - go online today, set up an account and
start making real savings on your childcare costs.
Myrtle Lloyd, HMRC’s
Director General for Customer Services, said:
We want to help working families and by using Tax-Free Childcare,
they can use the government top-up to make their money go
further. Search ‘Tax-Free Childcare’ on GOV.UK to find out how it
could help you.
Families could be eligible for Tax-Free Childcare if they:
- have a child or children aged 11 or under. They stop being
eligible on 1 September after their 11th birthday. If their child
has a disability, they may get up to £4,000 a year until 1
September after their 16th birthday
- earn, or expect to earn, at least the National Minimum Wage
or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive tax credits, Universal Credit or childcare
vouchers
A full list of the eligibility criteria is
available on GOV.UK.
Families can learn more about the childcare offers available to
them and what support they’re entitled to by visiting Childcare
Choices.
The government is offering help for households.
Check GOV.UK to find out what cost of living support, including
help with childcare
costs, families could be eligible for.
Further information
More information about Tax-Free Childcare and how
to register.
Latest Tax-Free Childcare
statistics were released on 16 November 2022. Data is
available up to September 2022.
More than 401,300 families in the UK saved on their childcare
costs with Tax-Free Childcare in September 2022, an increase of
over 85,000 from the previous year, with each family receiving a
share of the £44.4 million in government top-up payments.
HMRC has produced a
refreshed Tax-Free
Childcare guide for parents, which explains the reasons and
benefits for signing up to the scheme.
Each eligible child requires their own Tax-Free Childcare
account. If families have more than one eligible child, they will
need to register an account for each child. The 20% government
top-up is then applied to deposits made for each child, not
household.
Account holders must confirm their details are up to date every
three months to continue receiving the government top-up.
Childcare providers can also sign up for a childcare provider account
via GOV.UK to receive payments from parents and carers via
the scheme.
