HMRC URGES PARENTS TO CHECK TAX-FREE CHILDCARE SUPPORT

HM Revenue and Customs (HMRC) is urging working parents to check whether they qualify for Tax-Free Childcare, which can provide up to £2,000 a year per child. HMRC says 601,620 families received government top-ups through the scheme in June. It says 37,145 families in Scotland use the scheme. HMRC puts the June top-ups at £55.7 million across the UK, with an average of £93 per family. Parents can check their eligibility and apply through GOV.UK.

For every £8 parents pay into a Tax-Free Childcare account, the government adds £2. Parents can receive up to £500 every three months per child, or £1,000 if the child has a disability. They can use the account to pay for approved nurseries, before and after-school clubs, and holiday activity clubs. Families can spend the money immediately, save it for later or withdraw unused money. The scheme remains available throughout the year.

Eligibility generally covers children aged 11 or under, and children with disabilities aged 16 or under. Both parents, where applicable, must each earn or expect to earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage. Neither parent can earn more than £100,000 a year, and families receiving Universal Credit or childcare vouchers do not qualify. Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “Tax-Free Childcare can make a real difference. Go to GOV.UK to find out more today.”