6th February 2023
HMRC has reminded families that they can save up to £2,000 per year on their childcare costs using the Tax-Free Childcare (TFC) scheme.
HMRC data showed that over 401,300 families used TFC in September 2022 and therefore benefitted from government support on childcare costs.
Under TFC, the tax relief available is 20% of the costs of childcare, up to total childcare costs of £10,000 per child per year. The scheme is therefore worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for TFC for children under 12 (up to 17 for children with disabilities).
HMRC stated that money can be deposited into a TFC account at any time and can be used straight away.
Victoria Atkins, Financial Secretary to the Treasury, commented: ‘Tax-Free Childcare can make a big difference to household budgets, and I urge families to make sure they are getting the help they are entitled to.
‘It is a simple process – go online today, set up an account and start making real savings on your childcare costs.’
Additional information on TFC and how to create an account can be found here.
21st November 2023