A recent announcement from the Government offers a temporary relaxation of the criteria to receive tax-free childcare and up to 30-hours of free childcare during the Coronavirus outbreak. This is excellent news for parents returning to work ...
This is equivalent of the tax most people pay - 20% - which gives the scheme its name, 'tax-free'. The government will top up the account with 20% of childcare costs up to a total of £10,000 - the equivalent of up to £2,000 support per child per year (or £4,000 for disabled children).
The scheme is available for children under the age of 12 and for children with disabilities under the age of 17, as their childcare costs can stay high throughout their teenage years.
To qualify, parents will have to be in work, and each earning at least 16 hours of the national minimum wage a week and not more than £100,000 each per year!
During this COVID-19 pandemic, individuals whose earnings are now below the normal minimum income requirement,, but would normally expect to meet the income requirement, remain eligible.
In addition, critical workers who may have exceeded the maximum income threshold of £100,000 per year because of increased hours as a direct result of coronavirus, will still be eligible for 30 hours and tax-free childcare for the current tax year
Those who may have missed the 31 March deadline for reconfirmation or application for 30 hours free childcare. Local authorities will be able to extend the validity dates on 30 hours codes for eligible critical worker parents during the summer term.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.