Parents can claim free £500 top-up to help with childcare costs during the summer holidays
30.05.2024 - 10:39
/ dailyrecord.co.uk
New data published by HM Revenue and Customs (HMRC) shows that approximately 740,000 families used Tax-Free Childcare for 966,000 children during the 2023/24 financial year, including 44,100 households in Scotland. With just a few weeks left to go before the start of the school holidays, families can easily sign up for Tax-Free Childcare and reap the rewards of annual savings of up to £2,000 per child, or £4,000 if their child is disabled.
Tax-Free Childcare can help pay for approved childcare for children aged 11 or under, or up to 16 if the child has a disability. Parents can receive up to £500 (or £1,000 if their child is disabled) every three months, which means for every £8 paid into their online account, they will automatically receive an additional £2 top up from the UK Government.
HMRC estimates it takes just 20 minutes to apply online for a Tax-Free Childcare account that can be used to help pay for a child’s nursery, childminder, breakfast or after school club or holiday activity club.
Once an account is opened, parents can deposit money immediately, so it is ready to be used whenever it is needed, and unused money in the account can be withdrawn at any time.
Families could be eligible for Tax-Free Childcare if they:
A full list of the eligibility criteria is available on GOV.UK here.
Families can learn more about the childcare offers available to them and what could fit their family by visiting Childcare Choices on GOV.UK here.
Families in Scotland may also be able to access help during the cost of living crisis through the Cost of Living Support Scotland website here.
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