Save up to £2,000 a year on childcare costs for your
little pumpkins
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 UK 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Any unused money can be withdrawn at any time.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 account today 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Any unused money can be withdrawn at any time.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 UK 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.
Notes
- 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
- 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 UK 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. - Follow HMRC’s Press Office on Twitter @HMRCpressoffice
