HM Revenue and Customs (HMRC) is reminding working parents in the South East – including here on the Isle of Wight – to not miss out on the opportunity to get up to £2,000 a year to pay for regulated childcare, including holiday clubs and other out-of-school activities, during the Easter holidays.
Tax-Free Childcare provides thousands of eligible working families with up to £500 every 3 months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.
For every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in government top-up, and it is available for children aged up to 11, or 17 if the child has a disability.
More than 51,760 working families used the scheme in December 2021, in the South East. Overall, HMRC paid out more than £34million in top-up payments, which was shared between nearly 328,000 families across the UK.
With recent research estimating that around 1.3 million families could be taking up this government support, parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK.
This scheme can help working families including the self-employed and is one of many ways the government is supporting households to reduce their costs and keep more of what they earn to help pay for other bills.
Helen Whately, HM Treasury’s Exchequer Secretary to the Treasury, said:
“There are lots of brilliant holiday clubs and childcare providers to help working parents during the Easter holidays, and Tax-Free Childcare is a great offer that can help cut the childcare bills.
Article continues below this advertisement “I urge families across the UK to take advantage of this support and put extra pounds in their pocket – sign up now and save on your childcare costs.”
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.
