HMRC: Sign up to tax-free childcare before Easter

Working parents have been encouraged to sign up to a scheme that could help them save thousands in childcare costs.

Tax-free childcare can be used to pay for approved childcare, including childminders, wraparound care, after school clubs or school holiday care.

Parents can get financial support of up to £2,000 a year per child, or £4,000 if their child is disabled.

You could be eligible if you:

• have a child or children aged 11 or under (or up to 16 if your child has a disability)
• you and your partner (if you have one) earn or expect to earn at least the national minimum wage or living wage for 16 hours a week, on average  
• each earn a maximum of £100,000 a year 
• don’t receive universal credit or childcare vouchers    

Sign up before Easter holidays

HM Revenue and Customs (HMRC) is now urging families to sign up for the scheme before they book their Easter holiday childcare.

“£2,000 a year off childcare bills can make a big difference to household expenses,” said Myrtle Lloyd of HMRC.

“There are plenty of childcare providers to choose from to suit your needs and your children’s interests.

“Sign up today to make those savings for the Easter school holidays and for your plans for the rest of the year.”

How does tax-free childcare work?

For every £8 you deposit in a tax-free childcare account, the government tops it up by £2.

So you could get up to £500 (or £1,000 if your child is disabled) every three months to put towards the cost of childcare.

After you’ve opened an account, you can deposit money and use it straight away or leave it until you need it.

You can also withdraw unused money in the account whenever you like.

Check eligibility criteria and register for tax-free childcare at GOV.UK.