Autumn is here and with October school holidays just around the corner, HM Revenue and Customs (HMRC) is reminding working families to give their childcare budget a treat this Halloween
by opening a Tax-Free Childcare account.
Parents can use Tax-Free Childcare to help with childcare costs for school holiday clubs, breakfast or after school clubs, childminders or nurseries. It provides working families with up to £2,000 a year per child off their childcare bills for children up to the age of 11, or £4,000 a year up to the age of 16 if their child has a disability.
For every £8 paid into a Tax-Free Childcare account, families automatically receive a top up from the government of £2. Using the tax-free top up, families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.
Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year. Families who have not yet signed up should check their eligibility and apply online today.
It takes around 20 minutes to open an account and money can be deposited at any time. The money can be used straight away or left in the account and used whenever it is needed. Any unused money can be withdrawn at any time.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
Families need plenty of childcare options when the weather turns cold and wet and days get shorter. We would urge parents to ensure they’re taking advantage of all opportunities available – whether it’s sending their child to wraparound school club or a holiday club during the half term break. Tax-Free Childcare provides financial help that fits your family - to support your childcare needs and save you money. Search ‘Tax-Free Childcare’ on GOV.UK to get started.
It takes around 20 minutes to open an account and money can be deposited at any time. The money can be used straight away or left in the account and used whenever it is needed. Any unused money can be withdrawn at any time.
The government is offering help for households. Check GOV.UK to find out what cost of living support is available, including help with childcare costs.
School term dates vary across the UK. More information can be found on GOV.UK.