LevellerLive

HM Revenue and Customs (HMRC) today released a reminder to working parents in the South West. With Easter holidays approaching don’t miss out on the opportunity to get up to £2,000 a year to pay for regulated childcare.

The money can go towards holiday clubs and other out-of-school activities.

HMRC say that Tax-Free Childcare provides thousands of eligible working families with up to £500 every three months. That can rise to £1,000 if a child is disabled.  

How do you get the extra money? For every £8 you deposit into a Tax-Free Childcare online account, you receive an additional £2 in government top-up.

The scheme is available for children aged up to 11, (or 17 if the child has a disability).

More than 30,800 working families in the south west used the scheme in December 2021. Overall, HMRC paid out more than £34 million in top-up payments, which was shared between nearly 328,000 families across the UK.

This scheme can help working families including the self-employed. With a much discussed cost of living crisis on the horizon, this scheme should be a helping hand.

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.

Childcare providers can also sign up for a childcare provider accounts via https://www.gov.uk/guidance/sign-up-to-tax-free-childcare-if-youre-a-childcare-provider  to receive payments from parents and carers via the scheme.

For more information about Tax Free Childcare go to https://www.gov.uk/tax-free-childcare