Parents with youngsters born after 2014 can apply to a government scheme that could bring in up to £4,000 towards childcare expenses. Money specialist Robert King of Nannywage Ltd is urging mums and dads not to overlook the tax-free benefit available for those with kids under 11 as the new tax year kicks in.
Robert said: “The Tax-Free Childcare scheme allows working parents to save up to £2,000 per child annually on approved childcare costs, and up to £4,000 for children with disabilities. For every £8 deposited into the account, the government contributes an additional £2, up to £500 every three months, or £1,000 for disabled children.”
He added: “Parents should take advantage of this scheme, as it provides valuable financial relief, helping families manage childcare costs while maintaining flexibility to withdraw unused funds if circumstances change.”
Applying for Tax-Free Childcare should be a quick job, with Robert indicating it takes just 20 minutes online on the government’s website. Once set up, the account is ready for immediate use — covering expenses across nurseries, childminders, as well as breakfast, after-school clubs, or holiday activity clubs.
He explained that any money not used can be taken out without a fuss, reports Leicestershire Live. Robert said: “Parents must earn at least the equivalent of 16 hours per week at the National Minimum Wage or Living Wage and no more than £100,000 annually per parent. The scheme is not available to those receiving Tax Credits, Universal Credit, or childcare vouchers”.
“For self-employed individuals or directors, additional proof of meeting minimum income requirements may be needed, such as accountant statements, invoices, wage slips, or bank statements. This ensures the scheme supports those actively working and contributing to childcare expenses.
“The scheme supports children aged 11 or under, or up to 16 if they have a disability. Eligibility ends on September 1 after the child’s 11th or 16th birthday, depending on their circumstances.”
All the details can be found on the Government site.
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Cookie Notice.
