Tax-Free Childcare - Robinsons London

Tax-Free Childcare

December 21, 2022 Support 0 Comments

 

HMRC are reminding families to sign up for their Tax-Free Childcare.

Families could save up to £2,000 a year towards their childcare costs.  HMRC is urging thousands of other families to not miss the chance to save up to £500 every 3 months, or £1,000 if their child is disabled.

Families can sign up to Tax-Free Childcare to help pay for holiday clubs, 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% 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.

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.

 

Eligibility

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 11th birthday. If their child has a disability, they may get up to £4,000 a year until they are 17
  • earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
  • each earn under £100,000 per annum
  • do not receive tax credits, Universal Credit or childcare vouchers