TAX TRICK

A million parents could be missing out on a tax break of up to £2,000 – are you one of them?

The Government has pulled out £600million of funding from the Tax-Free Childcare scheme because not enough parents are claiming

THOUSANDS of British parents could be missing out on a tax break worth as much as £2,000 a year, it has emerged.

The Government has pulled £600million out of a scheme meant to help parents pay the sky-high cost of childcare.

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Hundreds of thousands of pounds are missing out on a possible tax breakCredit: Alamy

It came after hundreds of thousands of eligible Brits failed to claim any cash from the programme.

Ministers were today blasted for failing to ensure children get "the best possible start in life".

was introduced last year and is intended to make childcare cheaper for nearly all working parents.

Most people who work at least 16 hours a week, have children aged 11 or younger and earn less than £100,000 are entitled to claim.

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Parents can get a £2 refund for every £8 they spend on childcareCredit: Alamy

The Government refunds claimants £2 for every £8 they spend on childcare - effectively meaning the care they buy is exempt from tax.

The Treasury estimates that a total of 1.5million are eligible to take part in the scheme.

But just 235,000 Brits have opened accounts on the website used to administer the benefit - meaning more than 1million could be owed extra money.

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- which also features a calculator so you can work out whether you're better off claiming Universal Credit rather than TFC.

You also need to check if your childcare provider is signed up to the scheme.

Angela Rayner blasted ministers for pulling money out of the schemeCredit: PA:Press Association

Shadow Education Secretary Angela Rayner blasted: “Austerity is clearly not over for hard-pressed families.

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“The Budget has completely failed to provide children with the best possible start in life, and parents will once again be left without support in accessing the childcare they need.

“The fact that projected spending has fallen by hundreds of millions of pounds yet again means thousands of parents will not be getting the support they need with the cost of childcare."

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Tory vice-chairman Tom Pursglove hit back: “With our balanced approach to the economy, we are able to increase spending on childcare in real terms since 2010 to around £6billion a year by 2020.

“This includes delivering our commitment to provide working parents of three- and four-year-olds 30 hours free childcare a week – helping them balance work and family life and give children the best start in life."

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HMRC is now launching a marketing campaign to ensure parents know about the tax break.


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