Almost 650,000 UK families cut their childcare costs during the 2022 to 2023 tax year by taking advantage of the government’s Tax-Free Childcare scheme.
According to HMRC data, this is an increase of more than 137,500 compared to the previous year.
HMRC is reminding eligible working families of the financial support available.
For every £8 paid into an online account, families will automatically receive an additional £2 from the government.
It’s available for children aged up to 11 (or 17 if the child is disabled), families can receive up to £2,000 a year per child (or £4,000 if the child is disabled) through Tax-Free Childcare, which can help towards the cost of holiday clubs, before and after-school clubs, childminders, nurseries and other approved childcare schemes.
Victoria Atkins, The Financial Secretary to the Treasury, said, “While thousands more working families are benefitting from Tax-Free Childcare, which is making a real difference to their childcare bills, many more are missing out on the help they’re entitled to.
“Parents should check their eligibility and apply online, the top-up could make a big difference to working families at a time they need it most.”
Myrtle Lloyd, HMRC’s Director General for Customer Services, added, “Tax-Free Childcare is a flexible benefit for families, allowing them to save towards the cost of childcare throughout the year and use when they need it.
“It can be a real boost to the household budget of working families. Search ‘Tax-Free Childcare’ on GOV.UK and sign up today.”
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