Recently, we took part in a Tax-free Childcare information meeting held by Childcare Choices. The government run organisation’s main purpose is to raise awareness and understanding of the government Tax-free Childcare scheme that helps parents or carers with childcare costs. We were very surprised by the statistics of parents still unaware or not using the benefits of this scheme, and so want to encourage more families to check their eligibility.
What is Tax-free Childcare?
Government support for working parents in the UK working at least 16 hours per week, earning up to £100k per year. This includes the self-employed. If your child is aged between 0-11 years old , you can claim up to £2,000 towards childcare costs per year (or up to £4,000 if your child has a disability). It is available to parents who are not receiving Tax Credits, Universal Credits or Childcare vouchers.
“Approximately 650,000 families used TFC for 836,000 children in financial year 2022-23, which compares to 512,000 families using Tax-Free Childcare for 647,000 children in financial year 2021-22.”
(https://www.gov.uk/government/statistics/tax-free-childcare-statistics-march-2023)
Key notes around Tax-free Childcare
- Bumbles Day Care is an approved provider and signed up to the Tax-free Childcare scheme. ‘Approved’ means that we as a childcare setting are registered with and inspected by one of the Health and Social Care Trusts.
- Tax-free childcare is available for children aged 0-11 years (or 0-16 years if disabled).
- Tax-free childcare (TFC) is also available for school age children when they are at childcare and not at school, i.e school during holidays.
- TFC can be used for upfront costs and retainers (Parents can apply for TFC if they’re starting or re-starting work within the next 31 days).
- Parents can save TFC across the year to reduce holiday childcare costs.
- For every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year.
