Tax Free Childcare

11 Nov 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.

1. You can open an online account, which you can pay into to cover the cost of childcare with a registered provider.
2.  This is all done through the governments website.
3.  For every 80p paid in, the government will top up an extra 20p up to a total of £10,000.
4.  The scheme is available for children up to 12 years of age.
5.  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.
6.  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.
7. 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.
8. You can pay money into your account as and when you like.
9.  You will be able to withdraw money from the account but the government will also withdraw its corresponding contribution
10. 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