Parents urged to use Tax-Free Childcare for wrap-around care costs
With millions of children returning to school this week, families are reminded that they can receive a 20 per cent government top-up to help towards the cost of wrap-around childcare.
The top-up is paid into the child’s Tax-Free Childcare account and the money can go towards the cost of childminders, breakfast and after school clubs, as well as approved play schemes.
Tax-free childcare is available to working parents and carers who have children aged up to 11, or 17 if their child is disabled.
For every £8 they deposit into their account, they will receive a £2 top-up, up to the value of £500 every three months, or £1,000 if their child is disabled.
Myrtle Lloyd, HMRC’s director general for customer services, said: “As your children head back to school this autumn, don’t miss out on the opportunity to receive your 20 per cent top-up to help pay for their childcare.
“It is quick and easy to sign-up, just search ‘tax-free childcare’ on GOV.UK.”
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other accredited childcare providers.
Parents and carers, who are returning to work after parental leave, can apply for a Tax-Free Childcare account for that child before they need to start using it.
Families can start depositing money 31 days before they return to work, maximising the potential government top-up saving.