Families reminded to make the most of Tax-Free Childcare

Working families are being urged to make use of the financial support available for childcare costs over the summer holidays.

This comes as recent HMRC data shows that families using Tax-Free Childcare saved an average of almost £100 a month.

How Does Tax-Free Childcare Work?

For every £8 paid into an online account, families will automatically receive an additional £2 from the government. This is available for children aged up to 11 (or 17 if the child is disabled).

Those eligible can save up to £2,000 per child on their yearly childcare bills, which can be put toward any approved childcare, including:

• Nurseries
• Childminders
• Holiday clubs
• Breakfast clubs
• After-school clubs

Who is Eligible for Tax-Free Childcare?

If the following applies to you, then you are likely to be eligible for the scheme:

• Have a child/children 11 years old or under – they stop being eligible on the 1^st of September after their 11^th If your child has a disability, you could get up to £4,000 a year until the 1^st of September after their 16^th birthday.
• Earn (or expect to earn) at least the National Minimum Wage (NMW) or Living Wage for an average of 16 hours a week, as long as it’s no more than £100,000 per annum.
• Don’t already receive tax credits/Universal Credit/childcare vouchers

For a step-by-step guide on Tax-Free Childcare, visit GOV.UK.

To find out more about contracting, please get in touch with Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.