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Childcare Account chores

25 April 2024

HMRC’s Childcare account can be used to claim free childcare (if eligible) or pay for Tax-Free Childcare.

Using the HMRC Childcare Account

You can use the HMRC Childcare Account to claim free childcare or pay for Tax-Free Childcare. To continue receiving these benefits, you need to sign in every three months and confirm your details are current.

To be eligible for free childcare through the Childcare Account, you must be a parent of a two, three, or four-year-old child living in England. Starting September 2024, the scheme will include children of working parents from nine months old. Applications open on May 12, 2024. Note that Scotland, Wales, and Northern Ireland have different schemes.

Benefits of the Tax-Free Childcare Scheme

The Childcare Account also allows claims under the Tax-Free Childcare (TFC) scheme. This scheme supports working families with childcare costs for children up to 11 years old, or 17 for those with certain disabilities. Numerous registered childcare providers across the UK, including childminders, breakfast and after-school clubs, and approved play schemes, are part of this scheme. Parents can regularly pay into their account and save their TFC allowance for school holidays.

For every £8 parents contribute, the government will top up an additional £2, up to a total of £10,000 per child per year. This can result in annual childcare savings of up to £2,000 per child, or £4,000 for disabled children until they turn 17.

The TFC scheme is open to all qualifying parents, including the self-employed and those on a minimum wage. It’s also available to parents on paid sick leave and those on paid and unpaid statutory maternity, paternity, and adoption leave. To be eligible, parents must work at least 16 hours per week and earn at least the National Minimum Wage or Living Wage. However, if either parent earns more than £100,000, both parents are ineligible for the scheme.

Source: HM Revenue & Customs Mon, 22 Apr 2024 00:00:00 +0100

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