Working parents across the UK may be eligible for up to £2,000 per child. HMRC has reminded people of a scheme designed to help Britons pay for childcare costs.
Tax-Free Childcare works as a 25% savings top-up scheme. For every £8 you pay into your online account, the government adds £2. Claimants can receive up to £2,000 per child per year, or up to £4,000 if your child is disabled. This money can then be used for childcare, including school clubs and babysitters.
To qualify for tax-free childcare, your child must be 11 years of age or younger and usually live with you. For disabled children, the age limit is 16 years and younger.
Parents must also be working, including being self-employed, on maternity or paternity leave, or on statutory sick leave. Each parent must also expect to earn at least 16 hours a week at the National Minimum Wage or National Living Wage for the next three months and not have an annual income exceeding £100,000 a year.
GOV.UK wrote in a post on X: “Are you a working parent? You may be eligible for tax-free child care.”
He added that the scheme “helps cover childcare costs” for eligible parents with a child aged 11 or younger.
The message continues: “The government adds £2 for every £8 you pay, up to £2,000 per year per child (or up to £4,000 if your child is disabled).”
It added: “Apply online to open a childcare account and then confirm eligibility every 3 months.”
It’s worth noting that you cannot claim tax-free childcare if you receive Universal Credit. Parents also cannot use the scheme at the same time as childcare vouchers received from legacy employers.
Government guidance states: “A tax-free childcare scheme can help pay for childcare.
“You will need to open a child care account that you and the government will pay into. You can then use this money to pay your child care provider.
“For every £8 you deposit into the account, the government tops it up with £2.
“The total increase you can receive per child is £500 every three months (up to £2,000 per year). This increases to £1,000 every three months if your child is disabled (up to £4,000 per year).
“Usually you will have to work (or return to work) and your child must be 11 years old or younger (16 or younger if disabled).
“Your childcare provider must be registered with the tax-free childcare scheme. Before you apply, you need to check with your service provider that they are already registered.”