Now the new school term has started, 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 UK Government top up of £2. Families can save up to £500 every three months for each child or £1,000 if their child is disabled.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Arranging childcare 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 Unused money in the account can be withdrawn at any time.
Tax-Free Childcare has saved 38,495 families in Scotland on their childcare costs during the 2022 to 2023 tax year, an increase of more than 9,300 from the previous year according to the latest statistics released by HM Revenue and Customs (HMRC) today (24 May 2023).
With thousands more families benefitting from the UK Government top up year on year, HMRC is reminding eligible working families of the financial support available to pay for approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries. Last year, £533 million in government cash was shared by families across the UK who saved money on their childcare bills.
Working families, with children up to the age of 11, or 16 if their child has a disability, can save 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 an additional 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.
This is one of many ways the UK Government is easing cost of living for people across the country, whilst taking action to halve inflation this year which is currently adding pressure to household budgets.
Victoria Atkins, The Financial Secretary to the Treasury, said: “While thousands more working families are benefitting from Tax-Free Childcare, which is making a real difference to their childcare bills, many more are missing out on the help they’re entitled to.
“Parents should check their eligibility and apply online, the top-up could make a big difference to working families at a time they need it most.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:
“Tax-Free Childcare is a flexible benefit for families, allowing them to save towards the cost of childcare throughout the year and use when they need it. It can be a real boost to the household budget of working families. Search ‘Tax-Free Childcare’ on GOV.UK and sign up today.”
More than one million families could be eligible for Tax-Free Childcare. Families who haven’t signed up should check their eligibility and sign up to start saving today.
Opening a Tax-Free Childcare account is straightforward and can be done online in about 20 minutes. Money can be deposited at any time at any time of the year to be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time.
With the Easter school holidays nearly here, HM Revenue and Customs (HMRC) is reminding families in Scotland not to miss out on UK Government help to pay for childcare.
Tax-Free Childcare can pay for any approved childcare for children aged 11 or under, or 16 if the child has a disability. More than 26,000 families in Scotland used the scheme in December 2022.
Working families, where each parent or carer earns up to £100,000 can use it, meaning for every £8 paid into an online account they will receive an additional £2 from the government. This means parents and carers can receive up to £500 every 3 months (£2,000 a year for each child), or £1,000 (£4,000 a year for each child) if their child is disabled.
Whether children go to nursery, a childminder, attend breakfast, after school or holiday clubs, as well as out of school activities, Tax-Free Childcare could be used.
Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year. Families who have not yet signed up should check their eligibility and apply online today.
Victoria Atkins, Financial Secretary to The Treasury, said: “Tax-Free Childcare provides extra help with childcare costs which could make all the difference to working families and make childcare expenses more manageable.
“I would urge families to go online today to find out how it can help you.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Childcare is so important for working families, especially during school holiday time. Tax-Free Childcare provides financial support when it’s needed the most.
“Search ‘Tax-Free Childcare’ on GOV.UK to find out how it could help you.”
A Tax-Free Childcare account can be opened online in just 20 minutes. Money can be deposited at any time to be used straight away, or whenever it is needed.
Unused money in the account can be withdrawn at any time. Go to GOV.UK to register and get started.
Families could be eligible for Tax-Free Childcare if they:
· have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they can receive support until 1 September after their 16th 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 .
The UK Government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.
More than 26,000 families in Scotland saved on childcare costs in December thanks to Tax-Free Childcare and HM Revenue and Customs (HMRC) is urging those yet to sign up not to miss out.
The latest figures revealed by HMRC show an increase of 6,390 families in Scotland using the scheme compared to December 2021.
Tax-Free Childcare is a financial support for working families with children up to the age of 11, or 16 if their child has a disability. The government top up can be used to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.
A total of £41.5 million in government top-up payments were made to working families across the UK in December 2022 with each family saving up to £2,000 a year per child or £4,000 if their child is disabled.
Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help families get the most out of their finances and Tax-Free Childcare can help pay towards their childcare costs. Search ‘Tax-Free Childcare’ on GOV.UK to get started.”
For every £8 paid into the Tax-Free Childcare account, families automatically receive an additional £2. Families can save up to £500 every three months (£2,000 a year) for each child or £1,000 (£4,000 a year) if their child is disabled.
More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible not to miss out on their entitlements. Families can find out more about Tax-Free Childcare via the Childcare Choices website.
The government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs.
Tax-Free Childcare can help working families pay for any approved childcare for children aged 11 or under, or, 16 if the child has a disability – whether the child goes to nursery, a childminder, attends breakfast or after school club, has holiday care or goes to an out of school activity.
For every £8 paid into an online account, families will automatically receive an additional £2 from the government. Parents can receive up to £500 every 3 months (£2,000 a year), or £1,000 (£4,000 a year) if their child is disabled.
Opening a Tax-Free Childcare account is simple and takes around 20 minutes. Money can be deposited at any time and can be used straight away, or whenever it is needed. Unused money in the account can be withdrawn at any time.
Victoria Atkins, Financial Secretary to the Treasury said: “Tax-Free Childcare can make a big difference to household budgets and I urge families to make sure they are getting the help they are entitled to.
“It is a simple process – go online today, set up an account and start making real savings on your childcare costs.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “We want to help working families and by using Tax-Free Childcare, they can use the government top-up to make their money go further.
“Search ‘Tax-Free Childcare’ on GOV.UK to find out how it could help you.”
Families could be eligible for Tax-Free Childcare if they:
have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until 1 September after their 16th 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
Families can learn more about the childcare offers available to them and what support they’re entitled to by visiting Childcare Choices.
The government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs, families could be eligible for.
Families receive up to £500 every three months (£2,000 a year) per child, or £1,000 (£4,000 a year) if their child is disabled, helping towards the cost of before and after-school clubs, childminders and nurseries, holiday clubs and other approved childcare schemes.
In June 2022, more than 23,200 working families in Scotland benefitted from Tax-Free Childcare – but thousands more could be missing out. Overall in June, HMRC paid out £41.6 million in top-up payments, which was shared between approximately 391,000 families across the UK.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said:“Tax-Free Childcare can make a big difference to families in Scotland, helping with the bills for things like wraparound care for school children, nurseries, childminders and holiday clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”
More than one million families in the UK are entitled to some form of UK Government childcare support and the government is encouraging those eligible to not miss out on their entitlements.
For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets.
Accounts can be opened at any time of the year and can be used straight away, and money can be deposited at any time and used when needed.
Any unused money that is deposited can be simply withdrawn at any time.
New Tax-Free Childcare statistics from HM Revenue and Customs (HMRC) have revealed that 29,110 families in Scotland received up to £2,000 towards the cost of their childcare during the 2021 to 2022 tax year, up from 20,330 in the previous year.
Tax-Free Childcare provides thousands of eligible working families with vital financial support towards the cost of their childcare with the government paying £240 million annually in top-up payments to families using the scheme.
For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets.
For every £8 paid into a Tax-Free Childcare online account, families will automatically receive an additional £2 in government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.
Families receive up to £500 every three months, per child, or £1,000 if their child is disabled, helping towards the cost of before and after-school clubs, childminders and nurseries, holiday clubs and other approved childcare schemes.
But hundreds of thousands of families could be missing out, with recent research published by HMRC estimating that about 1.3 million families could be eligible for this government support. Parents and carers are being urged to check their eligibility and register for Tax-Free Childcare via GOV.UK.
Across the UK, 512,415 families used Tax-Free Childcare in the 2021 to 2022 tax year, compared to 374,135 in the 2020 to 2021 tax year.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.”
Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: “It’s fantastic that more parents are taking up Tax-Free Childcare. This support provides a helping hand with childcare costs for working families.
“With over one million families eligible, I want to encourage parents to take advantage of Tax-Free Childcare and keep the extra pounds in their pocket.”
The latest monthly comparisons for Scotland also show that a record number of families were using their Tax-Free Childcare account in March 2022 – 22,710 families compared to 15,240 in March 2021 – an increase of 7,470 families.
The scheme offers a 20% government funded top-up on money deposited into Tax-Free Childcare accounts, which can be used to pay their childcare provider. Accounts can be opened at any time of the year and can be used straight away, and money can be deposited at any time and used when needed.
For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up. Any unused money that is deposited can be simply withdrawn at any time.
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.
Customers in Scotland are being encouraged to check online for the range of financial support available from HM Revenue and Customs (HMRC) to help with living costs.
HMRC has listed the support available in one place to ensure people are not missing out and can easily find out online if they are eligible and how to claim.
The new GOV.UK page pinpoints people to a one-stop shop of all the benefits, credits and allowances available to individuals and families, making it easier than ever for people to claim what they are entitled to.
This includes:
Child Benefit
Child Benefit can be claimed if someone is responsible for bringing up a child who is:
under 16
under 20 if they stay in approved education or training
Only one person can get Child Benefit for a child. It’s paid every 4 weeks and there’s no limit to how many children you can claim for.
Tax-Free Childcare
Working parents can get assistance of up to £500 every 3 months (up to £2,000 a year) for each of their children to help with the costs of childcare until the September after their 11th birthday. If a child is disabled, this goes up to £1,000 every 3 months until the September after their 16th birthday (up to £4,000 a year).
Marriage Allowance
Marriage Allowance allows individuals to transfer 10% (£1,260) of their personal tax allowance to a husband, wife or civil partner if they earn less than the personal tax allowance, which is usually £12,570.
Work-related expenses and uniform allowances
Tax relief can be claimed on money spent on things like work uniform and clothing, tools, subscriptions or business travel.
The GOV.UK page also includes guidance for those on a low income wanting to make the most of their savings and help for those struggling to pay their tax bill.
Myrtle Lloyd, Director General Customer Services Group, HMRC: “We understand these are very difficult times for many so it’s vitally important we continue to highlight the range of support available.
“We’d encourage those who think they may be eligible for support to take a look and claim what they’re entitled to – it could make an important difference to household budgets at a time when it’s needed the most.”
Additional online tools and guidance are available to help customers check if they are eligible for each service – as well as extra support to guide them through the application process.
Thousands of working families in Scotland could be missing out on an opportunity to get up to £2,000 a year to help with the cost of childcare, HM Revenue and Customs (HMRC) is reminding parents ahead of the February mid-term break.
Tax-Free Childcare – the 20% childcare top-up – provides eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other accredited childcare schemes.
More than 18,500 working families used Tax-Free Childcare across Scotland in September 2021, receiving a share of £35 million in UK Government top-up payments towards their childcare costs – an increase of about 90,000 families compared to September 2020.
Tax-Free Childcare is available for children aged up to 11, or 17 if the child has a disability. For every £8 deposited into an account, families will receive an additional £2 in government top-up.
This scheme is one of many ways the UK Government is supporting households to raise their incomes and keep more of what they earn.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “The 20% government top-up offers working families help to pay for childcare, whether it’s nursery bills, after school clubs or holiday clubs.
“Search ‘Tax-Free Childcare’ on GOV.UK to find out more.”
Helen Whately, Exchequer Secretary to the Treasury said: “Whether it’s for holiday clubs, breakfast clubs, or childminders and nurseries, Tax-Free Childcare is a great offer that gives working parents a helping hand with their childcare costs.
“This UK Government is committed to supporting working families which is why it’s fantastic that thousands more are saving money through the Tax-Free Childcare scheme. I urge as many parents as possible to take advantage of this support.”
By depositing money into their accounts, families can benefit from the 20% top-up and use the money to pay for childcare costs when they need it. Accounts can be opened at any time of the year and can be used straight away.
For example, if parents and carers have school-aged children and use holiday clubs during school holidays, they could deposit money into their accounts throughout the year. This means they could spread the cost of childcare while also benefitting from the 20% government top-up.
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.
Families in Scotland may be eligible for Tax-Free Childcare to help pay for breakfast and after school clubs as children go back to school.
Families are eligible to save money on their childcare and benefit from a government top-up worth up to £2,000 every year, or up to £4,000 a year if a child is disabled. In June 2021, about 17,530 families in Scotland benefited from using Tax-Free Childcare, but thousands are missing out on this opportunity.
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 £1,000 if their child is disabled. Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.
HMRC recognises that families’ personal circumstances have changed since March 2020 as more parents and carers are preparing to return to their workplaces. The 20% 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 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.”
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.
