On 14 February 2018, the Government’s Tax Free Childcare Scheme was opened up to all children under the age of 12. The new scheme helps working parents with the cost of childcare.
It’s quick and easy to apply and parents could save thousands of pounds each year. For every £8 parents pay into their childcare account, the government will add an extra £2, up to £2,000 per child per year. HM Revenue and Customs have been gradually rolling out Tax-Free Childcare since April 2017.
The money can go towards a whole range of regulated childcare, including nurseries, childminders, after-school clubs and holiday clubs.
Parents, including the self employed, can apply online for Childcare by visiting Childcare Choices at www.childcarechoices.gov.uk. Parents can also access the government’s childcare calculator through Childcare Choices, which helps parents to choose which government support is best for them.
For more information please visit https://www.gov.uk/government/news/tax-free-childcare-opens-to-all-eligible-families.
Free Childcare & Coronavirus
- Your tax-free childcare entitlement won’t be cut if you’re temporarily earning less as a result of coronavirus. Normally, you’d need to earn a minimum income of £140/week. However, new rules ensure that if you’re temporarily earning less because you’ve been furloughed then you’ll still be eligible based on what you’d normally earn.
- Usually earn above £100,000/year but have seen your income drop in the past year? You may now be eligible to Tax-Free Childcare. If you or your partner earn £100,000 or more per year, normally this guide isn’t for you as you won’t be eligible. However, if you’ve seen your income drop – perhaps due to being furloughed – you could now be eligible for the boost as long as your (and your partner’s if you have one) annual salary is below £100,000.
How much you could save?
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