Make school holidays easier with tax-free childcare
Did you know that there is a government scheme available that can help contribute towards childcare costs ?
Tax-Free Childcare is a scheme available to working parents with children from 0-11 years and many parents are not yet taking advantage of the scheme.
Eligible parents can get up to £2,000 per child, per year to spend on qualifying childcare (effectively a 25% top up). Note that Tax-Free Childcare isn’t just for everyday childcare costs, such as childminders and nurseries, parents can also use it to pay towards the cost of:
- after school clubs
- summer camps
- school holiday activities
The provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.
Eligibility
Your eligibility depends on:
- if you are working
- how much you earn
- your child's age and circumstances
- your nationality
Your partner’s employment and income will affect your eligibility if you are:
- married or in a civil partnership and live together
- not married or in a civil partnership, but living together as though you are
It will not affect your eligibility if they:
- are or will be absent from your household for more than 6 months
- are a prisoner
Full details are avilable on the HMRC website.
Tax credits, Universal Credit or childcare vouchers
You cannot get Tax-Free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers.
Which scheme you’re better off with depends on your situation. HMRC provide a childcare calculator to work out which type of support is best for you.
Apply
Apply online for Tax-Free Childcare via HMRC
You and your partner cannot both have accounts for the same child.
If you apply for Tax-Free Childcare and someone else already gets 30 hours free childcare for that child, their 30 hours will stop at the end of the next term. You will be eligible for 30 hours free childcare instead.
If you are separated
You and your ex-partner need to decide who should apply if you are jointly responsible for your child.
If you cannot decide, both of you must apply separately and HMRC will decide who gets a childcare account.
For further information or to discuss your specific situation, please contact our team.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.