Families urged to boost their back-to-school

Families urged to boost their back-to-school

budget with Tax-Free Childcare

With the new school term starting, HM Revenue and Customs (HMRC) is reminding families
to open a Tax-Free Childcare account today to save up to £2,000 per child on their yearly
childcare bills. 
Families can use their Tax-Free Childcare account to pay for any approved childcare
including holiday clubs, breakfast and after school clubs, child minders and nurseries.    
The scheme provides working families, with children up to the age of 11, or 16 if their child
has a disability, up to £2,000 a year per child or £4,000 a year if their child is disabled. For
every £8 paid into a Tax-Free Childcare account, families automatically receive the
government top up of £2. Families can save up to £500 every 3 months for each child or
£1,000 if their child is disabled. 

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: 

“Starting back to school and arranging childcare for the term ahead can be costly for working
families. Tax-Free Childcare offers financial help so families can save on the cost of
childcare. Search Tax-Free Childcare on GOV.UK and sign up online today.” 
Opening a Tax-Free Childcare account online is straightforward and can be done in about 20
minutes. Money can be deposited at any time, 365 days a year, to be used straight away or
left in the account and used whenever it is needed. Unused money in the account can be
withdrawn at any time.  

Go to GOV.UK to register and start saving today. 

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.   

  1. 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 11 th birthday. If their child is disabled, they may get up to £4,000 a year
    until 1 September after their 16 th 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    
  2. HMRC has produced a Tax-Free Childcare guide for parents, which explains the
    reasons and benefits for signing up to the scheme.   
  3. 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.   
  4. Account holders must confirm their details are up to date every 3 months to continue
    receiving the government top-up.   
  5. Childcare providers can also sign up for a childcare provider account via GOV.UK to
    receive payments from parents and carers via the scheme.
Spread the love
Team @ AberdareOnline

Team @ AberdareOnline

Leave a Reply

Your email address will not be published. Required fields are marked *