This means that Tax-Free Childcare could also help to pay for any breakfasts and after school clubs for any of their children. This is through a top-up worth a whopping £2,000 every year or up to £4,000 should their child be disabled.
"308,000 families benefit already, but thousands more are missing out!"
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.
"Each child will require their own Tax-Free Childcare account!"
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.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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