Given the ongoing squeeze on household finances, parents may benefit from checking they are claiming the childcare support they are entitled to.

In particular, the Tax Free Childcare (TFC) scheme can be used to help pay not just for regular childcare during term time, but also for holiday clubs etc. during the upcoming summer holidays.

Under TFC, parents set up an online account which they use to pay for childcare.  Contributions into this account are topped up by the Government with the equivalent of basic rate tax.  That means that for every £8 you put in your account, the Government will add an extra £2. The Government will make top ups in this way up to a maximum of £500 a quarter for each child, or £1,000 a quarter if the child is disabled.

You can apply for TFC online.  However, there are some conditions which need to be met, including minimum and maximum parental earning thresholds.

To help taxpayers understand the support that may be available to them we’ve prepared a short video on TFC.  This sets out who qualifies, how support works, interaction with other benefits and how to apply.

Please share this video with your employees and wider networks.

 

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.   

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