HM Revenue and Customs (HMRC) is encouraging working parents to open a Tax-Free Childcare account to save on their childcare costs ahead of the Easter School Holidays.
Tax-Free Childcare is a Government funded top up scheme for working parents and can be used to pay for approved childcare for children aged:- 11 or under, or up to:- 16 years old, if the child has a disability. Parents can save up to:- £2,000 per year per child or £4,000 if their child is disabled. The funds can be used to pay for a:- before or after school clubs, a childminder, or an activity club during the holidays.
For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to help pay their childcare costs.
Latest figures show 67,800 families in the North West saved thousands on their childcare in December 2024, an increase of almost 10,500 compared to the previous year.
In December, parents across the UK received a total of £49.7 million in government cash to save on their childcare bills.
Families could be eligible for Tax-Free Childcare if:-
Tax-Free Childcare is a Government funded top up scheme for working parents and can be used to pay for approved childcare for children aged:- 11 or under, or up to:- 16 years old, if the child has a disability. Parents can save up to:- £2,000 per year per child or £4,000 if their child is disabled. The funds can be used to pay for a:- before or after school clubs, a childminder, or an activity club during the holidays.
For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to help pay their childcare costs.
Latest figures show 67,800 families in the North West saved thousands on their childcare in December 2024, an increase of almost 10,500 compared to the previous year.
In December, parents across the UK received a total of £49.7 million in government cash to save on their childcare bills.
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 receive up to:- £4,000 a year, until 1 September after their 16th Birthday.
- The parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average.
- Each earns no more than £100,000 per annum.
- Do not receive:- tax credits, Universal Credit, or childcare vouchers.
- Families can check their eligibility and apply on:- Gov.UK.
- Tax Free Childcare can be used alongside the free childcare hours for children aged 9 months old, subject to eligibility.