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Could Tax-Free Childcare help you?

For many working parents, childcare costs can eat up a large chunk of the family budget and play a significant role when planning a return to work and deciding working hours.

However,  help is at hand with Tax-Free childcare, which is a government scheme to support working parents with the cost of childcare.

Entitled parents could receive a total of £2000 per child, per annum to spend on qualifying childcare. For parents with two children, that could mean a saving of £4000 on the family budget.

Tax-Free childcare could be beneficial for both employees and employers, by:

  •  helping with childcare costs
  •  helping return to work
  •  helping work more hours, if they would like to
  •  helping you to retain staff which employers have invested in

Be sure to check if it’s the right option for you, as your tax credits will stop immediately if you successfully apply for Tax-Free Childcare. You will also have to cancel your Universal Credit and childcare vouchers. Click here for more information and to check if you’d be better off.

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Posted in: Childcare costs, HMRC, Tax