With the new school year fast approaching, HM Revenue and Customs (HMRC) is prompting families to make use of up to £2,000 a year towards their child’s wraparound care.
Working families can benefit from Tax-Free Childcare, which offers financial aid towards the expense of childcare for children aged 11 or under, or up to 17 for children with a disability.
How does Tax-Free Childcare work?
When families pay £8 into a Tax-Free Childcare online account, they automatically receive a supplementary £2 top-up from the Government.
Families obtain up to £500 every three months per child, which works out as £2,000 a year. If the child has a disability, this increases to £1,000 every three months, equalling to £4,000 a year.
The support aims to contribute towards the cost of childminders and nurseries, before and after-school clubs, holiday clubs and other authorised childcare schemes.
An estimated 391,000 working families benefitted from Tax-Free Childcare in June 2022, receiving a share of £41.6 million in Government top-up payments.
Are you missing out?
Over one million families in the UK are entitled to Government childcare support, but thousands in need could still be missing out.
Those eligible for the support are being urged to get what they are entitled to, and this eligibility depends on:
- If you are working
- Your income (and your partner’s income, if applicable)
- Your child’s age and circumstances
- Your immigration status.
It is important to note that adopted children are eligible for the support, but foster children are not.
Are you eligible? Take the next steps
You can open a Tax-Free Childcare account at any time of the year. This can be used immediately, and money can be deposited and utilised when and where needed.
Deposited money that is unused can be simply withdrawn at any time.
You can apply for the support here.
Need advice on Tax-Free Childcare, or related matters? Contact us today.