Childcare costs can add up, but this HMRC code could give you between £2,000 and £4,000 each year to help out.
For many parents, childcare is one of the largest expenditures. This is particularly true this time of year, with holiday childcare costs up 6%, while a whopping 85% of parents say that childcare costs are preventing them from having more kids. Half of parents are ‘trapped’ into living near grandparents due to childcare costs, too – it can be a real struggle.
A code issued by HMRC (more information on UK.GOV here) could give you between £2,000 and £4,000 each year for some extra assistance, however, but you must apply this week. The Tax-Free Childcare scheme gives parents payments ranging between £500 and £1,000 every three months.
It gives parents a potentially significant contribution towards care from nannies, nurseries, after-school clubs and play schemes. To claim the money, you simply need to set up a Tax-Free Childcare account by Saturday, August 31.
HMRC will send you a code to give to your childcare provider, who can then claim the money. Often, nurseries will incorporate the money into their fees, so a nursery costing £100 a day will then cost you £80 a day instead, for example.
To qualify for the code for this coming school term, you must be working and have a child over the age of nine months and under 11 by August 31. You must be earning at least £2,379 over the next three months if you’re over 21, equivalent to the National Minimum Wage for 16 hours per week.
If you aren’t working but claim a benefit like Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or Employment and Support Allowance, you may also be eligible.
If your child is disabled, the money is doubled to £4,000, and you may get this until they’re 16, if eligible for benefits including Disability Living Allowance and Personal Independence Payment.
In other money news, this child benefit rule change could see half a million parents boost their pension pots by £10,000s, and here are seven ways to save on back to school essentials, as it’s revealed parents will spend £2.3 billion in 2024. Meanwhile, these labelling kids’ school uniforms hacks could save parents £2,000 a year.
