Tax Free Childcare
HMRC have introduced a system, which will allow most parents to take advantage of receiving up to £2,000 per year, per child for use towards childcare costs.
To qualify, parents will have to be in work (including the self-employed), earning at least £115 per week and not more than £100,000 per year.
The scheme will be available for each child up to the age of 12 or 17 if the child has a disability. The account will operate like an online bank account. For every 80p you or someone else pays into the account, the government will add another 20p up to £500 per quarter. Parents can then use this account to pay childcare providers all or part of their childcare costs. This scheme will gradually replace the current Childcare Vouchers, which some employers offer. Money withdrawn NOT for childcare costs will be subject to HMRC taking back their contributions. For more details, please see www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know.
The same website can be used to check whether you are eligible for the extended 30 funded hours for 3 & 4 year olds. Visit childcare-support.tax.service.gov.uk to sign up for the new service.
To qualify, parents will have to be in work (including the self-employed), earning at least £115 per week and not more than £100,000 per year.
The scheme will be available for each child up to the age of 12 or 17 if the child has a disability. The account will operate like an online bank account. For every 80p you or someone else pays into the account, the government will add another 20p up to £500 per quarter. Parents can then use this account to pay childcare providers all or part of their childcare costs. This scheme will gradually replace the current Childcare Vouchers, which some employers offer. Money withdrawn NOT for childcare costs will be subject to HMRC taking back their contributions. For more details, please see www.gov.uk/government/news/tax-free-childcare-10-things-parents-should-know.
The same website can be used to check whether you are eligible for the extended 30 funded hours for 3 & 4 year olds. Visit childcare-support.tax.service.gov.uk to sign up for the new service.
