Tax-free childcare for kids applies to holiday club payments
28 Jun 2019
As the summer holidays loom, HMRC is reminding working parents that they can apply for tax-free childcare worth up to £2,000 per child per year to pay towards regulated holiday clubs during the school holidays
28 Jun 2019
Parents can choose from more than 68,000 childcare providers that have signed up, including school and summer camps across the country.
If parents pay into their tax-free childcare account regularly, they can ‘save up’ their money and use it for childcare during school holidays.
There are limits on the benefit and taxpayers with ‘adjusted net income’ over £100,000 in the current tax year are be eligible. This figures includes bonus payments.
For every £8 that families pay in, the government will make a top-up payment of an additional £2. The money saved can be put towards a whole range of other childcare options, including before and after school care when term time starts again in September.
The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 per year and have children aged 0-11 years old.
Liz Truss, chief secretary to the treasury, said: ‘We understand making arrangements for summer childcare at this time of year is important and can be a stressful time for parents.
‘Tax-free childcare makes things easier, putting more money in the pockets of parents and supporting as many families as possible to secure high-quality, affordable childcare.
‘Parents should visit the Childcare Choices website and take advantage of the range of offers to help balance their work and family lives while saving money.’
Childcare Choices website provides details of how to apply and eligibility criteria.