A Government scheme could help parents save up to £2,000 on their childcare costs through tax reliefs aimed at working parents.
The reliefs come in the form of a Tax-free Childcare account, from which you directly pay for your childcare needs.
With a Tax-free Childcare account, for every £8 you pay in, the Government will give you £2, up to a maximum of £2,000 per year per child. This is doubled if the child has disabilities – up to £4,000 per child, per year.
This is applicable to multiple children, so each child is entitled to £2,000 of tax-free childcare by using separate accounts.
Who can use a Tax-free Childcare account?
There are certain qualifying factors on who can use a Tax-free Childcare account.
How to apply
If you have more than one child in childcare you will need to open an account for each child, however you can do this as part of a single application.
You will need your National Insurance number and the process usually takes around 20 minutes but you might find it easier with one of our expert accountants to help you through the application.
Once you have applied for your Tax-free Childcare account, you can:
Family, friends, and employers can also pay into the account should you wish.
If you are a single parent, you can apply for Tax-Free Childcare provided you meet the eligibility requirements.
The scheme can be complicated to understand and applying can be difficult for individuals, especially when they are balancing childcare needs.
Engaging the services of a qualified accountant can speed up the process and increase your chances of making the most of Tax-free Childcare accounts.
Our expert team of accountants is here to help streamline your finances and better prepare you for future expenses. Please, get in touch.
“Richard Anthony case study – Terry Lewis – Jaques Samuel Pianos Widely considered to be London’s leading piano retailer, Jaques Samuel Pianos has grown considerably from its humble beginnings in the front room of Mr Samuel’s home in Notting Hill. They are now internationally recognised and have provided pianos for high-profile clients like Queen and […]”
Terry Lewis – Jaques Samuel Pianos
“Richard Anthony: ‘a super-star firm’ MT Finance is a property finance lender, specialising in bridging loans and auction finance. They assist numerous property professionals, business owners, and individuals with their finance requirements and specialise in short-term asset-based lending. Founder and Director, Tomer Aboody, knew that as an asset-based lender, the business would require an expert […]”
Tomer Aboody – MT Finance
“A family fairground success story The Botton family have been running a traditional fairground, arcade and amusement park in the heart of Skegness since taking over the Pleasure Beach in 1965. Jim, the Director of the company, took over from his father and now heads day-to-day activities and administration. He said: “The Pleasure Beach is […]”
Jim Botton – Pleasure Beach (Skegness)