With the Easter school holidays nearly here, HM Revenue and
Customs (HMRC) is
reminding families not to miss out on government help to pay for
childcare.
Tax-Free Childcare can pay for any approved childcare for
children aged 11 or under, or 16 if the child has a disability.
More than 405,000 families used the scheme in December 2022, with
each benefitting from a share of £41.5 million in government top
ups.
Working families, where each parent or carer earns up to
£100,000, can use it meaning for every £8 paid into an online
account they will receive an additional £2 from the government.
This means parents and carers can receive up to £500 every 3
months (£2,000 a year for each child), or £1,000 (£4,000 a year
for each child) if their child is disabled.
Whether children go to nursery, a childminder, attend breakfast,
after school or holiday clubs, as well as out of school
activities, Tax-Free Childcare could be used.
Opening a Tax-Free Childcare account is quick and easy and can be
done at any time of the year. Families who have not yet signed up
should check their eligibility and apply
online today.
, Financial Secretary to
The Treasury, said:
Tax-Free Childcare provides extra help with childcare costs which
could make all the difference to working families and make
childcare expenses more manageable. I would urge families to go
online today to find out how it can help you.
Myrtle Lloyd, HMRC’s Director General for
Customer Services, said:
Childcare is so important for working families, especially during
school holiday time. Tax-Free Childcare provides financial
support when it’s needed the most. Search ‘Tax-Free Childcare’ on
GOV.UK to find out how it could help you.
A Tax-Free Childcare account can be opened online in just 20
minutes. Money can be deposited at any time to 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be withdrawn at any time.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.
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 can receive support 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.
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
For more information about Tax-Free Childcare and
how to register.
Latest Tax-Free Childcare
statistics were released on 15 February 2023. Data is
available up to December 2022.
More than 405,420 families in the UK saved on their childcare
costs with Tax-Free Childcare in December 2022, an increase of
over 77,500 from the previous year, with each family receiving a
share of the £41.5 million in government top-up payments.
HMRC has
produced a 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 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 3
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.
