As families struggle to manage household finances with the cost-of-living crisis, parents are being reminded that there is cash available to help towards childcare costs.
Up to £2,000 a year is available to help pay for half-term holiday clubs and wraparound care during school terms.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”
Money in your pocket
More than 391,000 families saved money on their childcare costs in June this year, worth a total of £41.6 million in top-up payments, and HMRC is urging thousands of other families to not miss the chance to save up to £500 every three months, or £1,000 if their child is disabled.
Families can sign up to Tax-Free Childcare to help pay for holiday schemes, before and after-school clubs, childminders and nurseries, and other approved childcare schemes. It is available to families with children up to the age of 11, or 17 if their child has a disability.
The Government will pay 20 per cent of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.
For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets. Accounts can be opened at any time of the year and can be used straight away. Money can be deposited at any time and used when needed. Any unused money that is deposited can be simply withdrawn at any time.
Find out more
More than one million families in the UK are entitled to some form of government childcare support and the Government is encouraging those eligible to not miss out on their entitlements.
Families can find out more about Tax-Free Childcare via the Childcare Choices website.
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