Tax-free childcare: How to claim up to £2,000 a year for kid’s summer holiday clubs and childcare
PARENTS planning for the school summer holidays can get thousands of pounds of help paying for childcare.
Kids activities over the summer like holiday clubs and sports activities are covered by the tax-free childcare scheme.
Just a fraction of parents eligible for the government support to cover childcare costs are claiming the cash, which is worth up to £2,000 a year for each child.
The scheme can be used for childcare throughout the year and a range of options over the summer months when kids are not at school.
The government is reminding parents that this includes holiday clubs, childminders and sports activities
Myrtle Lloyd from HMRC said: "We want to help kids stay active this summer, whether they are going to summer holiday clubs or a childminder.
What help is available to parents for childcare costs?
CHILDCARE can be a costly business. Here is how you can get help.
- 30 hours free childcare - Parents of three and four-year-olds can apply for 30 hours free childcare a week.
To qualify you must work at least 16 hours a week at the national living or minimum wage and earn less than £100,000 a year. - Tax credits - For children under 20, some families can get help with childcare costs.
- Tax-free childcare - Available to working families and the self-employed, for every £8 you put in the government will add an extra £2.
"A childcare top-up will go a long way towards helping parents plan and pay for summer activities to keep their kids happy and healthy.
Tax-free childcare offers a top-up of £2 from the government on top of every £8 you spend on childcare.
This is worth up to £500 over three month, so £2,000 over a year and that's for each child.
If your child has a disability the amount you can get is higher: £1,000 every three months, adding up to £4,000 each year.
Tax-free childcare is available at the same time as claiming 30 hours free childcare, which is a separate scheme.
Who is eligible for tax-free childcare
Eligibility for tax-free childcare depends on a number of things.
For instance, if either you or your partner earns over £100,000 (including bonuses) then you won't qualify for the scheme.
You also need to meet several other criteria around whether you work, how much you earn and whether your partner has a job.
How to apply for tax-free childcare
There's one application for tax-free childcare and 30 hours free childcare. As part of your application, you will find out if you can get both.
You need to apply online -
You'll need to set up the account, and use it to pay for your registered childcare.
You’ll need details to hand for both you and your partner including:
- National Insurance numbers
- Unique Taxpayer Reference (UTR), if either of you are self-employed
It takes 20 minutes to apply, and it can take up to seven days to find out if you are eligible.
You need to reconfirm your details every three months to keep getting the help.
There's thousands of pounds up for grabs for parents from other childcare schemes too - here's what you can get.
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