Hop to It: Save on Easter Childcare Costs with Tax-Free Childcare

Unlocking Financial Benefits for Working Parents

HM Revenue and Customs (HMRC) is reminding working families to save money on their childcare costs in time for the school holidays. If you haven’t yet signed up for Tax-Free Childcare you could be missing out on annual savings and you should check if you are eligible to claim.

What Is Tax-Free Childcare?

• Tax-Free Childcare is a government scheme designed to provide financial support to working parents. It allows eligible parents to open an online childcare account, where they can deposit money to cover childcare expenses.
• For every ￡8 deposited, the government adds an additional ￡2, up to a maximum of ￡2,000 per child per year (or ￡4,000 for disabled children). A full list of the?eligibility criteria?is available on Gov.UK.

?How Does It Work?

• Create an Account: Visit the government’s Tax-Free Childcare website apply online with Gov.UK and create an account. You’ll need your National Insurance number and details about your child.
• Deposit Funds: Once your account is set up, deposit money into it. For every ￡8 you contribute, the government will add ￡2.
• Pay Your Childcare Provider: Use the funds in your account to pay your registered childcare provider directly. This can include nurseries, childminders, after-school clubs, and holiday clubs.

Remember, at Haines Watts Nottingham, we’re passionate about helping owner-managed businesses succeed. If you have any questions about personalised tax advice and would like to speak to an expert, start a conversation with us today to find out how we can help.

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