HMRC Warns Parents: Don't Miss Out on £2,000 Tax-Free Childcare
HMRC urges parents not to miss out on £2,000 tax-free childcare support. The scheme, open to eligible working parents, offers a 20% contribution towards childcare costs, with a maximum of £2,000 per child per year, or £4,000 for disabled children.
Parents can access this support through the tax-free childcare scheme, available at www.gov.uk/apply-for-tax-free-childcare. To qualify, they must be at least 16, in the UK, responsible for the child, and in qualifying paid work with an income of less than £100,000 a year. Those receiving Universal Credit or childcare vouchers are not eligible.
In addition to tax-free childcare, parents can also benefit from 30 hours of free childcare per week during term time for children aged nine months to four years old. The child must be under the age of 12 or 17 if disabled. This free childcare can be used to pay for registered childcare providers signed up to the scheme. Moreover, working parents with a child under 11 can receive a £2 top-up for every £8 paid towards childcare costs.
Parents who do not rely on tax-free childcare can still access other support, including Universal Credit for childcare costs, the childcare element of Working Tax Credit, free early education for children aged 2, 3, and 4, and support through local council schemes. The taxman encourages families to explore these options to help with childcare costs.
