office@ajrandco.co.uk

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Summer Childcare

HMRC can help towards the cost of children’s childcare and summer holiday activities

HMRC is reminding working families that they can use Tax-Free Childcare to help pay for their childcare costs over the summer.

How can HMRC help

Tax-Free Childcare – a childcare top-up for working parents – can be used to help pay for accredited holiday clubs, childminders or sports activities – giving parents and carers that extra peace of mind that their child is having fun during the school summer holidays and it can save them money.

Tax-Free Childcare is available for children aged up to 11, or 17 if the child has a disability. And for every £8 deposited into an account, families will receive an additional £2 in government top-up, capped at £500 every three months, or £1,000 if the child is disabled.

Parents and carers can check their eligibility and register for Tax-Free Childcare via GOV.UK. They can apply for an account at any time and start using it straight away. By depositing money into their accounts, families can benefit from the 20% top-up. Then use the money to pay for childcare costs when they need to, for example, during the summer holidays.

“We want to help kids stay active this summer, whether they are going to summer holiday clubs or a childminder. A childcare top-up will go a long way towards helping parents plan and pay for summer activities to keep their kids happy and healthy”.

Myrtle Lloyd HMRC

Over 282,000 families used their account in March 2021, the highest recorded number in any one month since the launch in 2017. These families received a share of more than £33 million in government top-up payments.

Help for pre-school aged children

Tax-Free Childcare is also available for pre-school aged children attending nurseries, childminders or other childcare providers. Families with younger children will often have higher childcare costs so the tax-free savings can really make a difference. Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme.

If you have further questions contact AJR & Co Ltd.