Tax-Free Childcare can help foot the bill for approved childcare for children aged 11 or under, or up to 16 if the child has a disability.
HMRC says UK households who earn £100,000 can get a perk worth £4,000 per child. Tax-Free Childcare can help foot the bill for approved childcare for children aged 11 or under, or up to 16 if the child has a disability.
Parents can receive up to £500 (or £1,000 if their child is disabled) every three months, meaning for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.
HMRC said: “You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year).
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“If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider. You can get Tax-Free Childcare at the same time as 15 or 30 hours free childcare if you’re eligible for both.”
You can use it to pay for approved childcare, for example childminders, nurseries and nannies and after school clubs and play schemes. Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.
Your eligibility depends on whether you’re working (employed, self-employed, or a director), your income (and your partner’s income, if you have one), your child’s age and circumstances and your immigration status.
You can usually get Tax-Free Childcare if you (and your partner, if you have one) are in work, on sick leave or annual leave and on shared parental, maternity, paternity or adoption leave and you’re going back to work within 31 days of the date you first applied,
You may still be eligible if your partner is working and you get any of the following: Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or (in Scotland only) Carer Support Payment or contribution-based Employment and Support Allowance.
You can apply if you’re starting or re-starting work within the next 31 days. If you or your partner have an expected ‘adjusted net income’ over £100,000 in the current tax year, you will not be eligible.