Autumn is here and with October school holidays just around the
corner, HM Revenue and Customs (HMRC) is reminding working
families to give their childcare budget a treat this Halloween by
opening a Tax-Free Childcare account.
Parents can use Tax-Free Childcare to help with childcare costs
for school holiday clubs, breakfast or after school clubs,
childminders or nurseries. It provides working families with up
to £2,000 a year per child off their childcare bills for children
up to the age of 11, or £4,000 a year up to the age of 16 if
their child has a disability.
For every £8 paid into a Tax-Free Childcare account, families
automatically receive a top up from the government of £2. Using
the tax-free top up, families can save up to £500 every 3 months
for each child or £1,000 if their child is disabled.
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.
It takes around 20 minutes to open an account and money can be
deposited at any time. The money can be used straight away or
left in the account and used whenever it is needed. Any unused
money can be withdrawn at any time.
Myrtle Lloyd, HMRC’s
Director General for Customer Services, said:
Families need plenty of childcare options when the weather turns
cold and wet and days get shorter. We would urge parents to
ensure they’re taking advantage of all opportunities available –
whether it’s sending their child to wraparound school club or a
holiday club during the half term break. Tax-Free Childcare
provides financial help that fits your family - to support your
childcare needs and save you money. Search ‘Tax-Free Childcare’
on GOV.UK to get started.
Eligible working families can register for a Tax-Free
Childcare accounttoday by registering on GOV.UK.
It takes around 20 minutes to open an account and money can be
deposited at any time. The money can be used straight away or
left in the account and used whenever it is needed. Any unused
money can be withdrawn at any time.
The government is offering help for households.
Check GOV.UK to find out what cost of living support is
available, including help with childcare
costs.
School term dates vary across the UK. More information can be
found on GOV.UK.
Further information
This Government is rolling out the single biggest investment in
childcare in England ever, expanding 30 free hours of childcare
for working parents and supporting children from nine months old
up to when they start school. This will save eligible working
parents up to an average of £6,500 per year. Parents can visit
the Childcare Choices
website to find out about the range of support available from the
Government with the costs of childcare.
Parents and carers could be eligible for Tax-Free Childcare if
they:
- have a child or children aged up to 11. They stop being
eligible on 1 September after their 11th birthday. If their child
is disabled, 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
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.
