HM Revenue and Customs (HMRC) is reminding working
families to save money on their childcare costs in time for the
school holidays.
With the Easter break just weeks away, families yet to sign up
for Tax-Free Childcare could be missing out on annual savings of
up to £2,000 per child, or £4,000 if their child is disabled.
Tax-Free Childcare can help pay for approved childcare for
children aged 11 or under, or up to 16 if the child has a
disability. Parents can receive up to £500 (or £1,000 if their
child is disabled) every 3 months, which means for every £8 paid
into their online account, they will automatically receive an
additional £2 top up from the government.
It takes just 20 minutes to apply online for a Tax-Free
Childcare account and can be used to help pay for a child’s
nursery, childminder, breakfast or after school club or holiday
activity club. It can also be used alongside the 15 or 30 hours
free childcare offer and to help pay for any specialist equipment
needed for a disabled child when they’re attending
childcare.
Myrtle Lloyd, HMRC’s
Director General for Customer Services, said:
Springtime is a good opportunity to take a fresh look at family
finances. A quick check online and you can find out how Tax-Free
Childcare can help cut the cost of your childcare bills. Every
bit of financial support helps – I would urge families to ’hop to
it’ and search ‘Tax-Free Childcare’ on GOV.UK to find out how you
could be better off and open your account today.
Once an account is opened, parents can deposit money immediately,
so it is ready to be used whenever it is needed; and unused money
in the account can be withdrawn at any time.
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.
Eligible working parents of 2-year-olds can now register to
access 15 hours free childcare per week from April 2024, the
first step in the rollout of the largest investment in childcare
in England’s history.
The offer will expand to 30 free hours of childcare for working
parents from nine months old up to when their child starts school
by September 2025, and is set to save parents using the full 30
hours up to £6,900 per year.
Families can learn more about the childcare offers available to
them and what could fit their family 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
For more information about Tax-Free Childcare and how
to register.
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.
There were a number of measures to benefit working parents
announced in the Spring Budget
