Tax-Free childcare scheme – reminder to families and providers

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

1.  Parents and carers could be eligible for Tax-Free Childcare if they:   

• have a child or children aged up to 11. They stop being eligible on 1 September after their 11^th If their child is disabled, they may get up to £4,000 a year until 1 September after their 16^th birthday   
• earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average   
• each earn no more than £100,000 per annum 
• do not receive tax credits, Universal Credit or childcare vouchers    

      2.  HMRC has produced a Tax-Free Childcare guide for parents, which explains the reasons and benefits for signing up to the scheme.   

      3.  Each eligible child requires their own Tax-Free Childcare account. If families have more than one eligible child, they will             need to register an account for each child. The government top-up is then applied to deposits made for each child, not                    household.   

      4.  Account holders must confirm their details are up to date every 3 months to continue receiving the government top-up.   

      5.   Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments              from parents and carers via the scheme.   

       6.   Follow HMRC’s Press Office on Twitter @HMRCpressoffice