HMRC has issued a reminder to parents warning them not to miss out on £2,000 to help with childcare costs.
The taxman is encouraging families not to miss out on tax free childcare.
Parents can apply for tax free child care[/caption]
In a statement issued on X, it said: “Don’t forget Tax-Free Childcare can help you save money on childcare costs this Autumn.
“If you’re a working parent with a child under 11, and you earn under £100,000 a year.”
The scheme gives working parents a £2 top-up for every £8 they pay towards the cost of their childcare.
You can receive a maximum of £2,000 in free cash a year from the government per child or £4,000 if your child is disabled.
The child has to be under the age of 12 or 17 if they are disabled.
But the money has to be used to pay for childcare.
That can include nurseries, childminders or after-school clubs.
It can also be used to cover the cost of care outside of term time or for out-of-school activities.
However, to qualify for the support you must meet a number of requirements.
That includes having an income of less than £100,000 a year.
Those in receipt of Universal Credit or childcare vouchers can not apply.
You can check out the full list of requirements below:
- be at least 16 years old
- be in the UK, or treated as being in the UK
- be responsible for the child you are applying for
- be in qualifying paid work, which can include being:
- self-employed
- on shared parental, maternity, paternity, or adoption leave
- on sick leave or annual leave
- expect to earn on average at least a weekly amount equivalent to 16 hours a week at the National Minimum Wage or National Living Wage over the next 3 months
- not have adjusted net income of more than £100,000 per year
- not be in receipt of:
- Universal Credit
- Childcare Vouchers
To apply for the support you can visit, www.gov.uk/apply-for-tax-free-childcare.
It is also important to note that your childcare provider must be signed to the scheme in order to benefit.
You can contact them directly to check if they are signed up.
What other support is available for parents?
You get child benefit if you’re responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training
The payment is used to help parents cover the costs of childcare.
It is paid at two weekly rates – £26.05 per week for your eldest or only child and £17.25 for any additional children.
Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes are made weekly.
Working families are now also able to access 30 hours of childcare per week during term time for children aged nine months to four years old.
The childcare must be provided by a registered provider such as a nursery, playscheme or school.
You can apply from when your child is 23 weeks old but the funding starts at the beginning of the term.
That means it would be too late to apply for funding for this term but you could apply before the next terms begin in January or April.
You’ll receive the free hours once your child reaches nine months old.
What help is available for parents?
CHILDCARE can be a costly business. Here is how you can get help.
- 30 hours free childcare – Parents of three and four-year-olds can apply for 30 hours free childcare a week.
To qualify you must usually work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. - Tax credits – For children under 20, some families can get help with childcare costs.
- Childcare vouchers – If your employer offers childcare vouchers you can get up to £55 a week in tax and national insurance savings.
You pay for your childcare before your tax contributions are taken out.
This scheme is open to new joiners until October 4, 2018, when it is planned that tax-free childcare will replace the vouchers. - Tax-free childcare – Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.
