You could be eligible for a portion of your childcare costs to be paid for by the Government.
The new Tax-Free Childcare Scheme was introduced in April 2017 to replace the Childcare Vouchers Scheme for new joiners from April 2018.
Tax-Free Childcare offers parents a £0.20 top up for every £0.80 paid, up to a maximum of £2,000 per year, per child. So for example if the childcare costs are £500 for a month, the parents would pay £400, with the Government topping this up by £100 to make the £500 total.
You can usually get Tax-Free Childcare if
- Your child/children are 11 years old or younger. (This is extended to 16 for children with disabilities)
- You and your partner both work earning at least the minimum National or Living wage for 16 hours per week. (self employed people do have some exemptions to this rule)
- Your childcare provider is a registered and authorised source.
- You are not eligible for Tax-Free Childcare if
- Either you or your partner has taxable income of £100,000 or over.
- Your child does not normally live with you.
- Your child is a foster child.
You cannot claim Tax-Free Childcare at the same time as childcare vouchers, Working Tax Credits, Child Tax Credits or Universal Credit.
For further information as to how to claim the Tax-Free Childcare, please email Nicola Wignall or call us on 01772 821021.