HM Revenue and Customs (HMRC) has announced that thousands of families using their Tax-Free Childcare accounts to pay for childcare costs are benefiting from a UK Government top-up worth up to £500 every three months.
Tax-Free Childcare can help pay for breakfast and after school clubs now that children are back at school.
Families eligible to save money on their childcare could get up to £2,000 every year, or up to £4,000 a year if a child is disabled. In June 2021, an estimated 17,530 families in Scotland benefited from using Tax-Free Childcare - but HMRC warns thousands are missing out.
Tax-Free Childcare is available to eligible parents or carers who have children aged up to 11, or 17 if their child is disabled.
For every £8 a parent or carer deposits into their account, they will receive a £2 top-up, up to the value of £500 every three months, or £1,000 if their child is disabled.
HMRC recognises that families’ personal circumstances have changed since March 2020 as more parents and carers are preparing to return to the workplace.
The 20% top-up is paid into the child’s Tax-Free Childcare account and is ready to use almost instantly, meaning parents and carers can use the money towards the cost of childminders, breakfast and after school clubs, and approved play schemes.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Don’t miss out on the opportunity to receive your 20% top-up to help pay for their childcare. It is quick and easy to sign-up.”
Parents and carers can check their eligibility and register for Tax-Free Childcare on the GOV.UK website here.
Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other accredited childcare providers.
Parents and carers, who are returning to work after parental leave, can apply for a Tax-Free Childcare account for that child before they need to start using it.
Families can start depositing money 31 days before they return to work, maximising the potential UK Government top-up saving.
Childcare providers can also sign up for a childcare provider account through GOV.UK to receive payments from parents and carers via the scheme.
Find out more about Tax-Free Childcare on the GOv.UK website here.
Get the latest money-saving and benefits news sent straight to your inbox. Sign up to our weekly Money newsletter here .
