HELP PAYING FOR YOUR CHILDCARE HMRC is reminding thousands of parents That is why I’m encouraging families to sign and families not to miss out on financial up now and save on childcare costs. support that can help pay for childcare during the summer holidays. There are lots of fantastic holiday clubs and childcare providers to help working parents Through Tax-Free Childcare, families can during the upcoming summer holidays, so receive up to £2,000 a year per child – or now is the time to take advantage of this £4,000 if their child is disabled – to put support. towards the cost of childcare. And it is available for children aged up to 11, or 17 For thousands of families who use Tax-Free if the child has a disability. The money can Childcare, the money they save each month help towards the cost of holiday clubs, before on their childcare costs is money that goes and after-school clubs, childminders and back into their pockets. Accounts can be nurseries, and other approved childcare opened at any time of the year and can be schemes. used straight away, and money can be deposited at any time and used when needed. The government will pay 20% of childcare Any unused money that is deposited can be costs by topping up the money paid into a simply withdrawn at any time. Tax-Free Childcare account. This means for every £8 paid into the online account, famCaroline from Portsmouth uses Tax-Free ilies will automatically receive an additional Childcare to help pay for her children’s after £2 in government top-up. school and holiday clubs and explains why she uses it. Caroline said: More than 384,280 families used Tax-Free Childcare in March 2022 – the highest I’m a busy working mum with 2 children number of families recorded using the and I find Tax-Free Childcare is easy and scheme since it was launched in April 2017 – straight-forward to use. I go on to the system but thousands more could be missing out. every month and set the amount I need to Research published earlier this year by pay to my childcare provider. The financial HMRC estimated that about 1.3 million support definitely helps but I also like the families could be eligible for this government flexibility and how Tax-Free Childcare helps support. me budget for my childcare costs. Find out more about Tax-Free Childcare via the Childcare Choices website. Myrtle Lloyd, HMRC’s Director General for Customer Services, said: Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK. Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said: Tax-Free Childcare helps families with the cost of childcare bills but we know that thousands of parents could be missing out.
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With the school summer holidays approaching, it is more important than ever that parents and carers are able to access the financial aid they qualify for. It can reduce their costs, help them to stay in work, or help them work more hours. More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible to not miss out on their entitlements. Families can find out what childcare support is best for them via Childcare Choices. To ensure that parents get the childcare support they are entitled to, the government is launching an awareness raising advertising campaign this week.
