HM Revenue and Customs (HMRC) is reminding working parents earning less than £100,000 a year that they could receive up to £2,000 per child per year through the Government’s Tax-Free Childcare scheme.
The support can be used to help pay for:
- nurseries
- childminders
- nannies
- after-school clubs
- holiday clubs
The scheme is available to parents of children under 11, or under 17 if the child is disabled.
How the Tax-Free Childcare Scheme Works
For every £8 a parent pays into their childcare account, the Government adds £2.
This means parents can receive:
- up to £500 every three months per child
(maximum £2,000 per year)
For disabled children, the support increases to:
- up to £1,000 every three months
(maximum £4,000 per year)
The money can also help disabled children access:
- extra support hours
- specialist carers
- equipment and mobility aids
HMRC Urges Families to Sign Up
HMRC has reminded parents not to miss out on the benefit as childcare costs continue to rise.
In a post on X (formerly Twitter), the department said:
“Don’t leave Tax-Free Childcare at the bottom of your Christmas to-do list. Check if you could save up to £2,000 per child today.”
Thousands of eligible families are still not claiming the support.
Who Can Apply?
To qualify, parents must:
- be at least 16 years old
- be in paid work
- expect to earn at least the equivalent of 16 hours a week at minimum wage
- have an adjusted net income below £100,000
Self-employed parents who started a new business within the last 12 months may still qualify even if earnings are lower.
You may also be eligible if you are temporarily not working but your partner is and you receive certain qualifying benefits.
Parents can apply if they are:
- starting a new job, or
- returning to work within 31 days
Who Cannot Claim Tax-Free Childcare?
You normally cannot use the scheme if you receive:
- Universal Credit
- Tax Credits
- childcare support through Housing Benefit
- childcare vouchers from an employer (older scheme)
Families must choose one system or the other.
How Long Support Can Be Claimed
You may receive Tax-Free Childcare until:
- 1 September after your child’s 11th birthday, or
- 1 September after their 16th birthday if they are disabled
The scheme can also be used alongside:
- 30 hours free childcare (if eligible)
Meaning some families can benefit from both forms of support.