Are you missing out on tax-free child care?
Now more than ever saving money, especially on child care, is high on the priorities list of many parents.
Almost 43,000 extra families made use of the tax-free childcare scheme in December 2020, compared to the previous year and received a portion of over £25 million in Government top-up payments, but some are still missing out.
Tax-free childcare allows parents or carers of children aged up to 11 (or 17 for disabled children) to receive a 20% top-up from the Government in money deposited to the scheme i.e. for every £8 deposited an extra £2 will be put in by the government up to the value of £500 every 3 months (or £1000 for a disabled child).
The money can then be used to pay childminders, after school clubs, nurseries or sports activities as long as the provider has signed up to the scheme.
For parents or carers who have received furlough payments or a self-employed income support scheme grant, they may still be eligible to receive tax-free childcare.
It’s important to remember that each eligible child will require their own tax-free childcare account as deposits are paid per child, not per household. The account will also need to be maintained and details kept up to date every 3 months in order to continue to receive the Government top-up.
For further information on Tax-Free Childcare, please contact Gemma Hedges on 023 8046 1259.