Posted on November 11, 2014
Tax Free Childcare
10 things you should know as a parent
From autumn 2015 tax-free childcare will be available to help with the cost of childcare.
- You can open an online account, which you can pay into to cover the cost of childcare with a registered provider.
- This is all done through the governments website.
- For every 80p paid in, the government will top up an extra 20p up to a total of £10,000.
- The scheme is available for children up to 12 years of age.
- To qualify you have to be in work, earning just over an average of £50 per week and not more than £150,000 per year.
- The scheme is designed to be flexible and allow parents to get back to work after the birth of a child, or work part time.
- The scheme does not rely on employers offering it. Any working family can use it as long as they meet the eligibility requirements and it is available to self-employed parents.
- You can pay money into your account as and when you like.
- You will be able to withdraw money from the account but the government will also withdraw its corresponding contribution
- If you currently receive Employer Supported Childcare you can continue to do so.
For more detailed questions and answers you can download the governments’ publication – Tax-Free Childcare