HMRC has taken part in a Q & A on the two major childcare support policies launched by the Government.
You can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare. For disabled children, you can get up to £1,000 every three months (£4,000 a year). The government will top up £2 for every £8 you pay into your online childcare account. This can be used to pay regulated childcare providers.
Tax-Free Childcare is available to working parents regardless of where they work, earning from £125 a week on average (16 hours at National Minimum Wage) and up to £100,000 a year. It is also available to self-employed parents. For two-parent families, both parents need to be working.
Parents can visit Childcare Choices and use the childcare calculator to work out which type of support is best for them.
Your child must be aged under 12. They stop being eligible on 1 September after their 11th birthday.
Around 1.5 million working parents are likely to be eligible.
Tax-Free Childcare can be used for a whole range of regulated childcare, from childminders and nurseries to after-school and holiday clubs. The childcare needs to regulated through Ofsted in England or the equivalent body.
Yes, you can get and use Tax-Free Childcare at the same time as 30 hours free childcare.
No, you can’t use it if you get either Universal Credit or Tax Credits.
Go to the Childcare Choices website. And after checking that it’s right for you, apply for your online childcare account. It should only take around 20 minutes to apply and most parents find out straightaway if they’re eligible. You can then start paying money in and receiving top-ups, up to a maximum of £2,000 per child, per year (£4,000 for disabled children).