Families may be eligible for Tax-Free Childcare to help pay for breakfast and after school clubs as children go back to school.
Families
are eligible to save money on their childcare and benefit from a
government top-up worth up to £2,000 every year, or up to £4,000 a year
if a child is disabled. In June 2021, about 308,000 families across the
UK benefited from using Tax-Free Childcare, but thousands are missing
out on this opportunity.
Tax-Free Childcare is available to
eligible parents or carers who have children aged up to 11, or 17 if
their child is disabled. For every £8 a parent or carer deposits into
their account, they will receive a £2 top-up, up to the value of £500
every three months, or £1,000 if their child is disabled. Parents and
carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.
HMRC
recognises that families’ personal circumstances have changed since
March 2020 as more parents and carers are preparing to return to their
workplaces. The 20% top-up is paid into the child’s Tax-Free Childcare
account and is ready to use almost instantly, meaning parents and carers
can use the money towards the cost of childminders, breakfast and after
school clubs, and approved play schemes.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“As
your children head back to school this autumn, don’t miss out on the
opportunity to receive your 20% top-up to help pay for their childcare.
“It is quick and easy to sign-up, just search ‘tax-free childcare’ on GOV.UK.”
Tax-Free
Childcare is also available for pre-school aged children attending
nurseries, childminders or other accredited childcare providers. Parents
and carers, who are returning to work after parental leave, can apply
for a Tax-Free Childcare account for that child before they need to
start using it. Families can start depositing money 31 days before they
return to work, maximising the potential government top-up saving.
Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.
Notes to Editors
- Visit GOV.UK for further information on Tax-Free Childcare
- Latest Tax-Free Childcare statistics were released on 18 August 2021. Data is available up to 30 June 2021.
- 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 20% 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 three months to continue receiving the government top-up.
- Follow HMRC’s Press Office on Twitter @HMRCpressoffice
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