Back to school – help with childcare costs

Source: HM Revenue & Customs | | 09/09/2021

As children have returned to school, HMRC is reminding parents that they may be eligible for Tax-Free Childcare (TFC) to help pay for breakfast and after school clubs.

The TFC scheme can help parents of children aged up to 11 years old (17 for those with certain disabilities). The TFC scheme helps support working families with their childcare costs. There are many registered childcare providers including childminders, breakfast and after school clubs and approved play schemes signed up across the UK. Parents can pay into their account regularly and save up their TFC allowance to use during school holidays. 

The TFC scheme provides for a government top-up on parental contributions. For every £8 contributed by parents an additional £2 top up payment will be funded by Government up to a maximum total of £10,000 per child per year. This will give parents an annual savings of up to £2,000 per child (and up to £4,000 for disabled children until the age of 17) in childcare costs. 

The TFC scheme is open to all qualifying parents including the self-employed and those on a minimum wage. The scheme is also available to parents on paid sick leave as well as those on paid and unpaid statutory maternity, paternity and adoption leave. In order to be eligible to use the scheme parents will have to be in work at least 16 hours per week and earn at least the National Minimum Wage or Living Wage. If either parent earns more than £100,000, both parents are unable to use the scheme.

HMRC’s Director General for Customer Services, said:

'As your children head back to school this autumn, don’t miss out on the opportunity to receive your 20% top-up to help pay for their childcare. It is quick and easy to sign up, just search ‘tax-free childcare’ on GOV.UK.'



Contact Us

8-10 Queen Street
Seaton
Devon
EX12 2NY
Tel: 01297 624188

Also in Exeter

21 Heavitree Road
Exeter
Devon
EX1 2LD
Tel: 01392 823999

 

Cookie Policy

Latest News

Have you claimed your Child Trust Fund cash?
14/10/2021 - More...
Young persons who turned 18 on or after 1 September 2020 may have cash waiting in a dormant Child Trust Fund (CTF)

Letting agencies and the Money Laundering Regulations
14/10/2021 - More...
HMRC is responsible for the money laundering supervision of certain businesses including letting agencies. Businesses

Don’t miss out on this tax allowance
14/10/2021 - More...
If you are entitled to the marriage allowance and have not yet applied, then you could receive a payment of up to £1,220

News Search


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login