Good news for families

Renfrewshire families who receive tax-free childcare support won’t lose out if their income has dropped as a result of the coronavirus pandemic.

HMRC has confirmed working parents or carers will continue to receive the financial support until October 31.

Through tax-free childcare, families receive a £2 government top-up for every £8 they pay into their child’s account, up to the value of £2,000 per child, or £4,000 per disabled child in financial support.

The money can be used towards the cost of qualifying childcare for a child up to the age of 11 or 17 for a disabled child.

Critical workers who may exceed the income threshold for the 2020-21 tax year as a result of working more during the pandemic will also continue to receive support this tax year.

HMRC’s deputy chief executive Angela MacDonald said:“HMRC has been providing financial support to families when it has been needed most and we will continue to help them as they transition back to a normal life.

“We want to make sure families will not be adversely affected by any abrupt change in circumstances, which is why we have extended available support through tax-free childcare to give families that extra boost.”

To continue receiving the financial support for tax-free childcare, parents need to reconfirm their eligibility every three months. Claimants should update HMRC as soon as possible if their childcare stops or if the costs for their childcare decrease or end.

Go to www.gov.uk/help-withchildcare-costs/tax-credits for more information.