Don’t miss out saving on Childcare costs
New Tax Free Childcare introduced October 2018
Do you know that starting now you can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare? If you get Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account.
If your child is disabled you may get up to £4,000 a year until they’re 17
And you can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.
You can open an online account to pay for registered childcare if you’re a working parent with children under 12 (or under 17 for disabled children).
Are you eligible
You can usually get Tax-Free Childcare if you work and earn at least the National Minimum Wage or Living Wage for 16 hours a week – this is £125.28 if you’re 25 or over (exceptions for newly self employed)
Your child must be 11 or under and usually live with you
Your childcare provider must be signed up to the scheme
You may be able to get up to 30 hours free childcare if your child is 3 to 4 years old (pre-reception).
Principal exceptions include that you cannot claim
- If the child does not live with you
- You or your partner has a taxable income over £100,000
- You are claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers
What sort of Childcare is covered
- Registered childminder, play scheme, nursery or club
- Childminder with an Ofsted-registered childminding agency
- Registered school
- Home care worker working for a registered home care agency
In certain circumstances this includes paying for childcare by a relative – such as a grandparent (but not your partner)
Is Tax Free Childcare the best scheme for you
Each person’s circumstances need looking at on an individual basis. There is a lot more information and advice at Money saving expert
You can also use the Gov.uk online calculator to find out if you are eligible and how much you are entitled to. It’s an interactive calculator which provides a good indication of what you are entitled to. You may be pleasantly surprised!
Finally, Tax-Free Childcare replaces the current Childcare Voucher Scheme. You do not have the option to take part in both, while if you leave your current childcare voucher scheme and transition onto the new Tax Free Childcare Scheme you also do not have the option to move back again.
Please remember that each individual’s circumstances will be different and therefore you should take advice before making any decisions.
For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230
For new enquiries contact us now.
