Families across Nottingham city and county are gearing themselves up for the February half term, which is fast approaching. However, working families may also be considering how they will manage childcare demands for the break, especially with the rising cost of living putting further strain on household budgets. HM Revenue and Customs (HMRC) is urging parents and carers to check if they are eligible for up to £2,000 a year to help with childcare.
Being made available through the Tax-Free Childcare scheme, more than 401,300 families used the system in September 2022. Tax-Free Childcare can help working families pay for any approved childcare for children aged 11 or under, or, 16 if the child has a disability – whether the child goes to nursery, a childminder, attends breakfast or after school club, has holiday care or goes to an out of school activity.
Victoria Atkins, Financial Secretary to the Treasury said: “Tax-Free Childcare can make a big difference to household budgets and I urge families to make sure they are getting the help they are entitled to."
She added: "It is a simple process - go online today, set up an account and start making real savings on your childcare costs.”
How it works and how to check eligibility
For every £8 paid into an online account, families will automatically receive an additional £2 from the government. Parents can receive up to £500 every 3 months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled. You can check check your eligibility via Childcare Choices.
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Opening a Tax-Free Childcare account takes around 20 minutes. Money can be deposited at any time and can be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time. Go to GOV.UK to register and get started.
Myrtle Lloyd, HMRC’s director General for Customer Services, said: “We want to help working families and by using Tax-Free Childcare, they can use the government top-up to make their money go further. Search ‘Tax-Free Childcare’ on GOV.UK to find out how it could help you.”
Families could be eligible for Tax-Free Childcare if they:
- have a child or children aged 11 or under. They stop being eligible on 1 September after their eleventh birthday. If their child has a disability, they may get up to £4,000 a year until 1 September after their sixteenth birthday
- earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- each earn no more than £100,000 per annum
- do not receive tax credits, Universal Credit or childcare vouchers
A full list of the eligibility criteria is available on GOV.UK. Families can learn more about the childcare offers available to them and what support they’re entitled to by visiting Childcare Choices.
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