Posted on: Wednesday 30 August 2023
With the new school term starting, HM Revenue and Customs (HMRC) is reminding families to open a Tax-Free Childcare account today to save up to £2,000 per child on their yearly childcare bills.
Families can use their Tax-Free Childcare account to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.
The scheme provides working families, with children up to the age of 11, or 16 if their child has a disability, up to £2,000 a year per child or £4,000 a year if their child is disabled.
For every £8 paid into a Tax-Free Childcare account, families automatically receive the government top up of £2. Families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Starting back to school and arranging childcare for the term ahead can be costly for working families. Tax-Free Childcare offers financial help so families can save on the cost of childcare. Search Tax-Free Childcare on GOV.UK and sign up online today.”
Opening a Tax-Free Childcare account online is straightforward and can be done in about 20 minutes. Money can be deposited at any time, 365 days a year, to be used straight away or left in the account and used whenever it is needed. Unused money in the account can be withdrawn at any time.
Go to GOV.UK to register and start saving today.
The government is offering help for households. Check GOV.UK to find out what cost of living support is available, including help with childcare costs.