Published: 02:50 PM, 15 June 2021
Today (15 June), HM Revenue and Customs (HMRC) is reminding workingfamilies that they can use Tax-Free Childcare to help pay for their childcarecosts over the summer.
Tax-Free Childcare – achildcare top-up for working parents – can be used to help pay for accreditedholiday clubs, childminders or sports activities – giving parents and carersthat extra peace of mind that their child is having fun during the schoolsummer holidays and it can save them money.
Tax-Free Childcare isavailable for children aged up to 11, or 17 if the child has a disability. Andfor every £8 deposited into an account, families will receive an additional £2in government top-up, capped at £500 every three months, or £1,000 if the childis disabled.
Parents and carers cancheck their eligibility and register for Tax-Free Childcare via GOV.UK.They can apply for an account at any time and start using it straight away. Bydepositing money into their accounts, families can benefit from the 20% top-upand use the money to pay for childcare costs when they need to, for example,during the summer holidays.
Myrtle Lloyd, HMRC’sDirector General for Customer Services, said: “We want to help kids stay activethis summer, whether they are going to summer holiday clubs or a childminder. Achildcare top-up will go a long way towards helping parents plan and pay forsummer activities to keep their kids happy and healthy. To find out more search‘tax-free childcare’ on GOV.UK.”
More than 282,000 workingfamilies used their account in March 2021, the highest recorded number offamilies in any one month since the scheme was launched in April 2017. Thesefamilies received a share of more than £33 million in government top-up payments.
Tax-Free Childcare isalso available for pre-school aged children attending nurseries, childmindersor other childcare providers. Families with younger children will often havehigher childcare costs than families with older children, so the tax-freesavings can really make a difference.
Childcare providers canalso sign up for a childcare provider account via GOV.UK toreceive payments from parents and carers via the scheme.