Tax-Free Childcare helps working families save more money by offering much-needed assistance with the cost of childcare for kids under the age of 11, or up to 17 if the child has a condition.
Families will immediately get an extra £2 in government top-up for every £8 deposited into a Tax-Free Childcare online account.
Families may receive up to £500 every three months (£2,000 a year) per kid, or £1,000 (£4,000 a year) if their child has a disability, to assist with the cost of before- and after-school programmes, daycare centres, vacation programmes, and other authorised childcare programmes.
Top-up payments totaling £41.6 million were distributed by HMRC in June 2022 to about 391,000 families in the UK.
Childcare Choices enables families to choose the best kind of childcare assistance for their needs.
Director General for Customer Services at HMRC, Myrtle Lloyd, stated:
Tax-Free Childcare can make a big difference to families, 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 a million families in the UK are eligible for government childcare assistance, and the government encourages those who qualify to take use of their benefits.
The money that thousands of families who utilise Tax-Free Childcare save each month on childcare expenses put back into their own wallets.
Money may be put at any time and used whenever it is required.
Accounts can be started at any time of the year and utilised immediately. Any unused funds that are placed may easily be withdrawn whenever you choose.