With schools returning soon, HMRC recently reminded families who claim Tax-Free Childcare that they can also use this scheme to help with their overall childcare costs ...
Any parent or carer can apply for Tax-Free Childcare when their child is aged up to 11 or 17 where the child is disabled. Every time a deposit of £8 is made into their account, they receive a further £2 top-up up to a total of £500 every three months, or £1,000 should the child be disabled.
HMRC is well aware of the changes in circumstances since the pandemic hit, and now many parents and carers are returning to the workplace they want to help out as much as they can.
The 20% top-up is ready to use virtually immediately so the money can be spent on childminding, breakfasts, after school clubs and other approved play schemes. It is also available for pre-school children attending nurseries, staying with individual childminders or other accredited childcare providers.
Any parent or carer returning to work after parental leave can apply for a Tax-Free Childcare account and can find out more by clicking here before they need to start using it. Money can be deposited up to 31 days before the return to work, and childcare providers can signup for their own account to receive payments from parents and carers.
The 20% top-up is applied to each child, not on a per-household basis and account holders need to confirm their details are correct and up to date every three months to continue receiving the top-up.
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