Parents reminded to take advantage of Tax-Free Childcare this Easter

Working families are being urged to take advantage of the financial support available for childcare costs over the Easter holidays.

HMRC data shows that over 542,000 families saved money on childcare in December last year, and so those who are eligible are being reminded to sign up now.

How Tax-Free Childcare Works

Families can save up to £2,000 per child on their yearly childcare bills – for every £8 paid into an online account, families will automatically receive an additional £2 from the government.

It can be put toward approved childcare for school holiday clubs, breakfast or after-school clubs, childminders or nurseries and is available for children aged up to 11 (or 17 if the child is disabled).

Who’s Eligible for Tax-Free Childcare?

Families could be eligible if they:

• 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.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said, “£2,000 a year off childcare bills can make a big difference to household expenses. There are plenty of childcare providers to choose from to suit your needs and your children’s interests – sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year. Go to GOV.UK to find out more.”

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