The Government’s tax-free childcare scheme could provide up to £2,000 a year per child, or £4,000 if the child is disabled, towards wraparound childcare costs and holiday clubs.
With many working families now arranging childcare for the school summer holidays and the start and end of the school day from September, this is a timely reminder of this valuable tax benefit.
For every £8 deposited in a tax-free childcare account the Government will top it up by £2 up to a maximum of £500 (or £1,000 if the child is disabled) every three months.
To qualify for the scheme the parent and their partner (if they have one) must 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; and must not receive universal credit or childcare vouchers.
Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability. You can find guidance on the HMRC website Tax-Free Childcare – GOV.UK.
