Tax-free childcare can boost family finances
Families in Lanarkshire may be eligible for tax-free childcare to help pay for breakfast and after school clubs.
They are eligible to save money on childcare and benefit fromagovernmenttop-up worth up to £2000 every year, or £4000 a year if a child is disabled.
Tax-free childcare is available to eligible parents or carers who have children aged up to 11, or 17 if their child is disabled. For every £8 a parent or carer deposits into their account, they will receive a £2 top-up, up to the value of £500 every three months, or £1000 if their child is disabled. Parents and carers can check their eligibility and register forTax-Free Childcare via GOV.UK.
HMRC recognises that families’ personal circumstances have changed since March last year as more parents and carers are preparing to return to their workplaces.
The 20 per cent top-up is paid into the child’s tax-free childcare account and is ready to use almost instantly, meaning parents and carers can use the money towards the cost of childminders, breakfast and after school clubs, and approved play schemes.
Myrtle Lloyd, HMRC’s director general for customer services, said:“As your children head back to school, don’t miss out on the opportunity to receive your 20 per cent top-up to help pay for their childcare.
“It is quick and easy to sign-up; just search‘tax-free childcare’on GOV.UK.”
Tax-free childcare is also available for pre-school aged children attending nurseries, childminders or other accredited childcare providers.
Parents and carers who are returning to work after parental leave can apply for a tax-free childcare account for that child before they need to start using it. Families can start depositing money 31 days before they return to work, maximising the potential government top-up saving.
Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.