From 14 February 2018, HMRC has made the scheme available to all parents of eligible children, who can now apply online.
The Tax Free Childcare scheme is available to help towards the cost of childcare for working parents. The scheme has been rolled out in stages to those who are eligible. After its initial launch in April 2017, there have been some issues, some of which have meant users can apply for compensation where they have been unable to receive the beneficial top-up to childcare costs.
Under the tax-free scheme, for every £8 the parent pays, the government pays an additional £2 top-up, up to a maximum of £2,000 per year per child. There is a higher limit of £4,000 per year per child for parents of children with disabilities. To be eligible, parents must have a weekly minimum earning of £120 per week, and a maximum of £100,000.
Think you might be entitled to claim, but unsure what to do? Call us – we’d be happy to talk you through the maze.