HM Revenue and Customs (HMRC) has issued a message to all parents, urging them not to miss out on some extra government cash during the Easter school holidays.
According to the government agency, eligible families could apply for tax-free childcare which can pay for any approved childcare for children aged 11 or under. It can also be provided for any child aged 16 or under with a disability.
Any working family where each parent or carer earns up to £100,000 can use the childcare top-up. For every £8 that is paid into an online account, they will receive an additional £2 from the government. By using this extra support, parents and carers can receive up to £500 every 3 months or £1,000 if their child is disabled - equating to £1,000 or £4,000 a year respectively.
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Victoria Atkins, Financial Secretary to The Treasury, said: "Tax-Free Childcare provides extra help with childcare costs which could make all the difference to working families and make childcare expenses more manageable. I would urge families to go online today to find out how it can help you."
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: "Childcare is so important for working families, especially during school holiday time. Tax-Free Childcare provides financial support when it’s needed the most. Search ‘Tax-Free Childcare’ on GOV.UK to find out how it could help you."
Who's eligible for Tax-Free Childcare?
In order to be considered eligible for Tax-Free Childcare, you must meet one of the following:
- Have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they can receive support until 1 September after their 16th birthday
- Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- Each earn no more than £100,000 per annum
- Do not receive tax credits, Universal Credit or childcare vouchers
If you don't heave a Tax-Free Childcare account, you can apply for one on GOV.UK
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