Childcare Costs – How To Access Support
With children starting to go back to schools and nurseries in September, and more employees going back to work full time due to the withdrawal of CJRS support, they may need to start thinking about childcare.
HMRC have issued a reminder that there is support available for families towards their childcare costs. If they haven’t already done so they should set up a “Tax-Free” Childcare Account to help pay towards the cost of childminders, breakfast and after school clubs and approved play schemes. For every £8 an eligible family pay into the special account the government adds £2, up to £2,000 a year, or up to £4,000 a year if a child is disabled.
Each eligible child requires their own Tax-Free Childcare account.
The scheme is available to parents or carers who have children aged up to 11, or 17 if their child is disabled. Parents can get Tax-Free Childcare in addition to 30 hours free childcare if they are eligible for both. If the employee or their partner have an expected ‘adjusted net income’ over £100,000 in the current tax year they will not be eligible. This includes any bonuses they expect to get.
Disclaimer: The information in this article is provided for general information only and does not constitute legal or professional advice. We cannot accept responsibility or liability for any actions you may take, or not take, based on this information.