Parents who have not yet claimed the tax-free childcare allowance are encouraged to do so.
It was revealed that one in five parents did not realise they satisfied the eligibility criterion, many parents have been missing out on Tax-Free Childcare.
The government has launched a campaign to promote the allowance, which allows parents to claim up to £500 every three months, and claims that doing so will help to relieve the cost of living problem.
The funds might be used to pay for nurseries and childminders, as well as summer camps and sports centres.
According to research issued by HM Revenue & Customs (HMRC), despite the fact that 1.3 million homes qualified for the assistance in March, just 282,000 families took advantage of it.
The programme is open to youngsters up to the age of 11, or 17 if the child has a disability. Families will receive an additional £2 in government top-up for every £8 deposited into an account, up to a maximum of £500 every three months, or £1,000 if the kid is disabled.
You can use Tax-Free Childcare for:
• Childminders, nurseries, and nannies are all available.
• Clubs and play schemes after school
• Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare
• If you’re single or have a partner, you can apply for tax-free daycare.
• You and your spouse, if you have one, must be earning at least the minimum wage for the equivalent of 16 hours each week.
• Self-employed workers who earn this amount are also eligible.
• If your child is disabled, you may be eligible for up to £4,000 every year until they reach the age of 17.
GOV.UK allows parents and carers to check their eligibility and apply for Tax-Free Childcare.
They can open an account at any moment and begin using it immediately. Families can take advantage of the 20% top-up by depositing money into their accounts and using the money to pay for childcare when they need it, especially during the summer vacation.
Preschool aged children who attend nurseries, childminders, or other childcare providers are also eligible for tax-free childcare. Because childcare costs are frequently greater for families with younger children than for families with older children, the tax-free savings can make a significant difference.
To receive payments, childcare providers can create a childcare provider account on GOV.UK.
Please contact our experienced team for assistance and advice on tax and related matters.