Parents are urged to claim up to £2,000 in savings by the government as the Easter holiday approaches.
In a recent press release, the UK government urged families not to "miss out on the opportunity" to claim on a tax-free top-up to be used during the Easter Holidays and beyond. The information also outlined exactly how the scheme works. Here's everything you need to know…
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"Tax-Free Childcare provides thousands of eligible working families with up to £500 every three months (or £1,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes."
How does tax-free childcare work?
Tax-free childcare is a scheme set up by the UK government for every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in government top-up. This equates to up to a £2,000 saving. It's valid for children aged up to 11 (or 17 if the child has a disability).
Claim government help for childcare costs
How do you claim tax-free childcare?
It's easy and simple to set up an online account to start saving your money and gaining the government top-up. Head to gov.uk to get started.
Am I eligible for tax-free childcare?
Most families are eligible for tax-free childcare as provided by the UK government and the exact criteria is as follows:
- Have a child or children aged up to 11 (up to 17 if they are disabled)
- Earn at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- Each earn under £100,000 per annum
- Do not receive tax credits, Universal Credit or childcare vouchers
Now is a great time to teach your children about saving
Can I claim childcare vouchers?
The childcare voucher scheme is now closed to new applicants. If you joined the scheme on or before 4 October 2018 you might be able to keep getting vouchers or directly contracted childcare so do check on the government website or with your employer.
With energy bills rising and the cost of living increasing, you may be worried about teaching your children good financial habits for the future. From best saving ideas through to using apps to encourage money confidence, there are lots of clever ways to get your children savvy with money.
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