Childcare can be so expensive, I’m sure most of us will agree. This is why schemes to help to subsidise the costs can be so helpful!
Thousands of families across the UK are missing out on on this great scheme – you can get a top up of up to £2000 a year, or £4000 if your child is disabled, by using the government tax-free childcare scheme. If you are eligible for a tax-free childcare account, you can use the scheme until your child is 11, or until they are 17 if they are classed as disabled.
How does tax-free childcare work?
The scheme is pretty easy to use, from our experience!
When you register for an account, you can pay in money that is sent directly to your childcare provider (who must be formally registered as a childcare setting). For every £8 you deposit, the government tops you up with £2, meaning that they cover 20% off the costs. This top up has a limit of £500 every three months, or £1000 if your child is disabled.
This is great for families who earn too high an income to use Tax Credits or Universal Credit, and who no longer get 15 or 30 funded hours in childcare or are not yet eligible for that.
This is a great video explaining the tax-free childcare scheme…