Latest news with #Tax-FreeChildcare
Scottish Sun
27-05-2025
- Business
- Scottish Sun
Warning for 800k parents missing out on benefit worth £2,000 a year – it could be a lifesaver for the school holidays
Read on for more money help CHILD'S PLAY Warning for 800k parents missing out on benefit worth £2,000 a year – it could be a lifesaver for the school holidays A WARNING has been issued for 800,000 parents who risk missing out on a benefit worth £2,000 a year. Tax Free Childcare is a benefit which helps working families with the cost of paying for nursery or after school clubs. Advertisement 1 Tax free childcare helps parents who may struggle with the cost of childcare Children up to the age of 12 are eligible, and this extends up to 16 if they live with a disability. To qualify, you or your partner (if you have one) need to be either employed or self-employed. In some instances, if you are not currently working you may still be able to claim if you are on incapacity benefit or severe disablement allowance. If you are eligible for the benefit, you will set up an online childcare account for your child. Advertisement For every £8 you pay into this account, the government will pay in £2 to use to pay your provider. So it is important to remember that you do not get the money as a lump sum. Instead, parents get up to £500 each month paid towards the childcare your child is attending. It is worth noting that you only get the top-up when you pay in. Advertisement So you must pay the £2,000 every three months (a quarter of a year) to receive the full £500. And the allowance does not roll over, so if you claim £300 in the first quarter, you can still only get £500 in the next quarter — even if you pay in more. I'm a mum of two and get a £1.7k Universal Credit payday each month people hate me as they work 40 hours a week for the same This is a little-known benefit, with MoneySavingExpert warning that 800,000 parents are unaware the scheme exists. You must also make sure that the childcare your little one attends accepts Tax-Free Childcare. Advertisement To avoid disappointments, check with your provider to see if they're signed up. For more information on setting up an account, you can visit the government website. Parents on Universal Credit with one child under 17 can claim up to £1,015 a month. Meanwhile, parents of two or more children or more eligible for up to £1,739 to help pay for childcare costs - up from £950 and £1,630 respectively. Advertisement CHANGES TO TAX FREE CHILD CARE From September 2025, children aged nine months to two years old will get 30 hours per week of free childcare. To qualify, the vast majority of parents will need to earn more than £9,518 but less than £100,000 a year. Your two-year-old can also get free childcare if you live in England and get any of the following benefits: Income support Income-based jobseeker's allowance (JSA) Income-related employment and support allowance (ESA) Universal Credit and your household income is £15,400 a year or less after tax, not including benefit payments The guaranteed element of pension credit Child tax credit, working tax credit (or both), and your household income is £16,190 a year or less before tax WHAT OTHER HELP IS AVAILABLE? You get child benefit if you're responsible for bringing up a child who is under 16 or under 20 if they are in approved education or training Advertisement The payment is used to help parents cover the costs of childcare. It is paid at two weekly rates - £26.05 for your eldest or only child and £17.25 for any additional children. Payments are usually made every four weeks, on a Monday or Tuesday, but sometimes are made weekly. If you are claiming child benefit for a child under 12, you also receive National Insurance (NI) credits. Advertisement NICs count towards your State Pension so claiming the benefit can be useful if you are missing any. Parents can also get help with free food vouchers through the government's Household Support Fund.
South Wales Guardian
20-05-2025
- Business
- South Wales Guardian
Martin Lewis: working families can use HMRC tax credits 'free money'
Tax-Free Childcare can be used flexibly to pay for childminders, wraparound and holiday childcare - which can make a huge difference to parents trying to cover 13 weeks a year of school holidays with five weeks' annual leave. Parents and guardians can use Tax-Free Childcare to save thousands on wraparound childcare and holiday club costs, with financial support of up to £2,000 a year per child, or £4,000 if their child is disabled, towards the cost. Martin discussed the benefit on his podcast this week, saying: "800,000 eligible families do not claim Tax Free Childcare, even though this is basically free money - it's not free money being paid for by the state or the taxpayer - however it's free money for an individual to help with childcare. "The problem with it is called Tax Free Childcare, but it's not about tax, and it's not tax free, and it's called tax free childcare, which is a political point made by the government who introduced it to try to say it was the equivalent to paying it from your pre tax income. But that's just baloney and bolderdash and any other b word you want to think of, right? "So what tax free childcare is? It's basically an account where you save for childcare and then you get a bonus of 20p for every 80p you've added and that goes towards our childcare to and can be paid for whatever is relevant childcare. It's absolutely worth doing for anyone who qualifies." He added: "I think if we renamed it the 'working family childcare top up', because it's for working families only, it's for childcare, and it tops up what you pay, that gives people a better understanding. We've done a lot of research that shows if people understood it better, they would claim it more." Tax-Free Childcare is a scheme that can be used to pay for any approved childcare so parents can arrange their childcare to suit them - whether that's wraparound care, a childminder, after school clubs or school holiday care. For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to use to pay for their childcare costs. Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability. It's quick and easy to apply on the HMRC website. Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. Neither parent can earn more than £100,000 a year after deductions. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: Recommended reading: HMRC says you can use it to pay for approved childcare, for example: Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
Rhyl Journal
20-05-2025
- Business
- Rhyl Journal
Martin Lewis: working families can use HMRC tax credits 'free money'
Tax-Free Childcare can be used flexibly to pay for childminders, wraparound and holiday childcare - which can make a huge difference to parents trying to cover 13 weeks a year of school holidays with five weeks' annual leave. Parents and guardians can use Tax-Free Childcare to save thousands on wraparound childcare and holiday club costs, with financial support of up to £2,000 a year per child, or £4,000 if their child is disabled, towards the cost. Martin discussed the benefit on his podcast this week, saying: "800,000 eligible families do not claim Tax Free Childcare, even though this is basically free money - it's not free money being paid for by the state or the taxpayer - however it's free money for an individual to help with childcare. "The problem with it is called Tax Free Childcare, but it's not about tax, and it's not tax free, and it's called tax free childcare, which is a political point made by the government who introduced it to try to say it was the equivalent to paying it from your pre tax income. But that's just baloney and bolderdash and any other b word you want to think of, right? "So what tax free childcare is? It's basically an account where you save for childcare and then you get a bonus of 20p for every 80p you've added and that goes towards our childcare to and can be paid for whatever is relevant childcare. It's absolutely worth doing for anyone who qualifies." He added: "I think if we renamed it the 'working family childcare top up', because it's for working families only, it's for childcare, and it tops up what you pay, that gives people a better understanding. We've done a lot of research that shows if people understood it better, they would claim it more." Tax-Free Childcare is a scheme that can be used to pay for any approved childcare so parents can arrange their childcare to suit them - whether that's wraparound care, a childminder, after school clubs or school holiday care. For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to use to pay for their childcare costs. Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability. It's quick and easy to apply on the HMRC website. Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. Neither parent can earn more than £100,000 a year after deductions. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: Recommended reading: HMRC says you can use it to pay for approved childcare, for example: Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
Western Telegraph
03-05-2025
- Business
- Western Telegraph
HMRC offers Tax Free Childcare for school and nursery pupils
Tax-Free Childcare can be used flexibly to pay for childminders, wraparound and holiday childcare. Hundreds of thousands of parents who recently found out their little one's September primary school place, can use Tax-Free Childcare to save thousands on wraparound childcare and holiday club costs HM Revenue and Customs (HMRC) has said. Many working families will now be arranging childcare for the start and end of the school day, and with Tax-Free Childcare they can get financial support of up to £2,000 a year per child, or £4,000 if their child is disabled, towards the cost. Myrtle Lloyd, HMRC's Director General for Customer Services, says: 'Starting school can be an expensive time, there's a lot to buy and there's also a lot to organise. Now you know where your child is going to school you can start organising your childcare and Tax-Free Childcare can help make the costs more manageable. Sign up to start saving today on What is Tax-Free Childcare? Tax-Free Childcare is a scheme that can be used to pay for any approved childcare so parents can arrange their childcare to suit them - whether that's wraparound care, a childminder, after school clubs or school holiday care. For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to use to pay for their childcare costs. Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability. It's quick and easy to apply on the HMRC website. Who is eligible for HMRC tax-free childcare payments? Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. Neither parent can earn more than £100,000 a year after deductions. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only) are certified as blind or severely sight-impaired Recommended reading: What can you use tax-free childcare payments for? HMRC says you can use it to pay for approved childcare, for example: childminders, nurseries and nannies after school clubs and play schemes Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
South Wales Guardian
03-05-2025
- Business
- South Wales Guardian
HMRC offers Tax Free Childcare for school and nursery pupils
Tax-Free Childcare can be used flexibly to pay for childminders, wraparound and holiday childcare. Hundreds of thousands of parents who recently found out their little one's September primary school place, can use Tax-Free Childcare to save thousands on wraparound childcare and holiday club costs HM Revenue and Customs (HMRC) has said. Many working families will now be arranging childcare for the start and end of the school day, and with Tax-Free Childcare they can get financial support of up to £2,000 a year per child, or £4,000 if their child is disabled, towards the cost. Myrtle Lloyd, HMRC's Director General for Customer Services, says: 'Starting school can be an expensive time, there's a lot to buy and there's also a lot to organise. Now you know where your child is going to school you can start organising your childcare and Tax-Free Childcare can help make the costs more manageable. Sign up to start saving today on Tax-Free Childcare is a scheme that can be used to pay for any approved childcare so parents can arrange their childcare to suit them - whether that's wraparound care, a childminder, after school clubs or school holiday care. For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2 which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months to use to pay for their childcare costs. Parents can use the scheme to pay for childcare for children aged 11 or under, or up to 16 if the child has a disability. It's quick and easy to apply on the HMRC website. Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday. Adopted children are eligible, but foster children are not. Neither parent can earn more than £100,000 a year after deductions. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they: Recommended reading: HMRC says you can use it to pay for approved childcare, for example: Your childcare provider must be signed up to the scheme before you can pay them and benefit from tax-free childcare. It's a good idea to check with your provider to see if they're signed up beforehand. If your child is disabled, you can use the extra tax-free childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids. Once an account is opened, parents can deposit money and use it straight away or keep it in the account to use it whenever it's needed. Any unused money in the account can be withdrawn at any time.
