Many of our parents currently use Childcare Vouchers to help pay for their nursery fees. We wanted to bring to your attention that this scheme is slowly being phased out, with Tax-Free Childcare taking its place. We would advise all parents to consider the benefits of this scheme. Here is a little more information.
What is Tax-Free Childcare?
If you’re a working parent with children under 12 (or under 17 for disabled children), you can open an online account to pay for registered childcare.
The government will top-up the money you pay into the account. For every £8 you pay in, the government will add an extra £2.
You can receive up to £2,000 per child – that’s up to £500 every three months. If you have a disabled child, you can receive up to £4,000 per child – that’s up to £1,000 every three months.
Parents of children born on or after 1st April 2013, and parents of disabled children, can apply now.
How do I know if I am entitled to Tax-Free Childcare?
You and any partner must each expect to earn (on average) at least £120 per week (equal to 16 hours at the National Minimum or Living Wage). If you, or your partner, are on maternity, paternity or adoption leave, or you’re unable to work because you are disabled or have caring responsibilities, you could still be eligible.
If either you or your partner, expect to earn £100,000 or more, you can’t get Tax-Free Childcare. You can’t use Tax-Free Childcare at the same time as childcare vouchers, Universal Credit or tax credits. You can use it for the 15 hours and 30 hours schemes.
For further information please visit: https://www.gov.uk/help-with-childcare-costs/tax-free-childcare Or ask Ian at First Steps.