Tax-free childcare - ensure you set up an account in time for the new school year!
By opening a government tax-Free childcare account, you could receive a 25% subsidy towards the cost of childcare. Many are missing out on the benefits of these accounts... which can be used to pay nursery fees, breakfast clubs, after school clubs and registered childminders.
The scheme works by subsidising the funds in your childcare account by 5%. It generally applies to children under 12 and the contribution can be up to £2000 a year, although, in the case of disabled children, the age limit is 16 and the amount that the government may contribute doubles to up to £4000 a year.
Unlike childcare vouchers, tax free childcare accounts are available to both employees and the self-employed.
To be eligible, the parent generally needs to be working and earning at least the National Minimum Wage or National Living Wage for at least 16 hours a week on average. However, parents are not eligible if either of the parents’ adjusted net income is more than £100,000 a year.