Save Up To £2,000 A Year On Childcare Costs For Your Little Pumpkins

10th October 2023

Autumn is here and as the October school holidays have started, HM Revenue and Customs (HMRC) is reminding working families to give their childcare budget a treat this Halloween by opening a Tax-Free Childcare account.

Parents can use Tax-Free Childcare to help with childcare costs for school holiday clubs, breakfast or after school clubs, childminders or nurseries. It provides working families with up to £2,000 a year per child off their childcare bills for children up to the age of 11, or £4,000 a year up to the age of 16 if their child has a disability.

For every £8 paid into a Tax-Free Childcare account, families automatically receive a top up from the UK Government of £2. Using the tax-free top up, families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.

Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year. Families who have not yet signed up should check their eligibility and apply online today.

It takes around 20 minutes to open an account and money can be deposited at any time. The money can be used straight away or left in the account and used whenever it is needed. Any unused money can be withdrawn at any time.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: "Families need plenty of childcare options when the weather turns cold and wet and days get shorter. We would urge parents to ensure they're taking advantage of all opportunities available - whether it's sending their child to wraparound school club or a holiday club during the half term break. Tax-Free Childcare provides financial help that fits your family - to support your childcare needs and save you money. Search ‘Tax-Free Childcare' on GOV.UK to get started."

Eligible working families can register for a Tax-Free Childcare account today by registering on GOV.UK. See https://www.gov.uk/tax-free-childcare

It takes around 20 minutes to open an account and money can be deposited at any time. The money can be used straight away or left in the account and used whenever it is needed. Any unused money can be withdrawn at any time.

The UK Government is offering help for households.
See https://helpforhouseholds.campaign.gov.uk/
Check GOV.UK to find out what cost of living support is available, including help with childcare costs.

School term dates vary across the UK. More information can be found on GOV.UK.

Parents and carers could be eligible for Tax-Free Childcare if they:

have a child or children aged up to 11. They stop being eligible on 1 September after their 11th birthday. If their child is disabled, they may get up to £4,000 a year until 1 September after their 16th birthday  
earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average  
each earn no more than £100,000 per annum
do not receive tax credits, Universal Credit or childcare vouchers
  

Each eligible child requires their own Tax-Free Childcare account. If families have more than one eligible child, they will need to register an account for each child. The UK Government top-up is then applied to deposits made for each child, not household.

Account holders must confirm their details are up to date every 3 months to continue receiving the government top-up.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.