Don’t miss out on tax-free childcare

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Did you know that working parents could get up to £2,000 to help with childcare costs?

The government led childcare scheme helps working parents (and self-employed) with childcare costs.

Tax-Free Childcare will cut childcare costs by up to £2,000 per year for each child under 12 years old, or £4,000 per year for disabled children under 17 years old.*

The scheme, which has been designed to replace the Childcare Vouchers Scheme, offers families the following options:

Tax-free childcare*

  • For working families earning under £100k and at least £131 per week
  • For those who aren’t receiving Tax Credits, Universal Credit or childcare vouchers
  • Children are aged 0-11 (0-16 if disabled)
  • Every £8 that goes into an online account, the government will add an extra £2, up to £2,000 per child.

15 hours free childcare

  • 15 hours of free childcare for two year-olds (only available in England)

15 hours free childcare

  • 15 hours of free childcare for children aged three and four (for all families in England)
  • 570 hours per year, can be used with one or more childcare provider
  • Similar schemes are run in Wales and Scotland

30 hours free childcare

  • 30 hours free childcare for three and four year olds (only available in England)

Tax credits for childcare

  • For all working families in the UK with children under 16 (under 17 if disabled)
  • 70% of childcare costs, up to a cap

Universal Credit for childcare

  • For all working families in the UK with children under 17
  • 85% of eligible childcare costs, up to a cap

 “It is very important that working parents register for these schemes,” said Nick Charnley, tax manager at Ellis & Co.

“You apply online, and there is also a childcare calculator which will help you choose the best childcare scheme for you and your family.”

For further information or to apply click here or contact Nick on 01244 343504.

*All figures from HMRC.