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 three 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. HMRC is urging families who have not yet signed up to check their eligibility and apply online today. It takes around 20 minutes to open an account on GOV.UK 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The money can be used straight away or left in the account and used whenever it is needed - any unused money can be withdrawn at any time.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 a 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 here.

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Eligibility for Tax-Free Childcare from HMRC

Families could be eligible for Tax-Free Childcare if they:

  • have a child or children aged 11 or under. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until September 1 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

A full list of the eligibility criteria is available on GOV.UK here.

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Families can learn more about the childcare offers available to them and what support they’re entitled to by visiting Childcare Choices here.

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