Looking for childcare for the February half-term? Don’t forget you can save up to £2,000 a year with Government support.
Families are being reminded that opening a Tax-Free Childcare account can help their bank balance if they have children aged 11 or under – or 16 if their child has a disability – if they go to nursery, a childminder, attends breakfast or after school club, has holiday care or go 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.”
For every £8 paid into an online account, families automatically receive an additional £2 from the Government. Parents can receive up to £500 every three months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled.
How to get you money
Opening a Tax-Free Childcare account is simple and 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 Unused money in the account can be withdrawn at any time.
Victoria said: “It is a simple process – go online today, set up an account and start making real savings on your childcare costs.”
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 11th birthday. If their child has a disability, they may get up to £4,000 a year until 1 September after their 16th 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
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.”
