Tax-Free childcare 

Did you know if you may be able to can claim up to £500 every three months ( £2000 a year) for each of your children under 11 years old ( they stop being eligible on September 1st after their 11th birthday) towards child care?

If your child is disabled and claims Disability Living Allowance, Personal Independence Allowance or they’re certified as blind or severely sight impaired, you may get up to £4000 a year until they are 17.

Effectively, the government will pay £2 for every £8 you pay into the online account for your child. That’s 20% extra towards the cost of your childcare.

You can claim the Tax-Free Childcare alongside the free 30 hours childcare if you meet the criteria for both.

Here’s an overview of the scheme 

Criteria

Child care provider 

You can only claim the Tax- Free Childcare gainst approved childcare providers that are part of the scheme; this includes

  • Registered childminders, nurseries and nannies 
  • Wrap around school clubs, holiday clubs and playschemes
  • A homeworker working for a registered home care agency
  • You can use the money to pay a relative ( e.g. a grandparent) if they’re a registered childminder (this costs areound £300 to set up) – You cannot claim for your partner though

Eligibility 

  • You must be in work, on sick or annual leave, on shared parental, maternity or adoption leave.
  • You ( and your partner) must expect to earn over £1853.28 over the next three months ( different rules apply for the self-employed)
  • You (or your partner) must have a National insurance number.

Exclusion criteria 

  • Your total taxable income must NOT be over £100,000pa.
  • You can not receive Working tax credit, Child tax credit, Universal Credit, childcare vouchers or a childcare bursary.

Here’s a link to the .gov website for more information Tax-Free Childcare – GOV.UK (www.gov.uk)

I hope you found this helpful.

Keep well

Laura 

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