![Unlock Savings: How Working Parents Can Claim a Free £500 Top-Up for Childcare Costs](https://budgetninja.online/images/jpg/3040-14876-a23eea5c-2f37-4dfc-a4f5-1ca510307210.jpg)
Parents Urged to Claim Free £500 Top-Up for Childcare Costs
As the summer break approaches, HM Revenue and Customs (HMRC) is encouraging working families to take advantage of a valuable opportunity to save on childcare expenses. With just 10 weeks left until schools close for the summer, parents can benefit from the Tax-Free Childcare scheme, offering annual savings of up to £2,000 per child, or £4,000 for children with disabilities.
Tax-Free Childcare is designed to assist with the costs of approved childcare for children aged 11 or under, extending to 16 for children with disabilities. Parents can receive up to £500 (or £1,000 for disabled children) every three months, with the government providing a £2 top-up for every £8 deposited into their online account.
Myrtle Lloyd, HMRC’s Director General for Customer Services, emphasized the ease of applying for a Tax-Free Childcare account, highlighting its versatility in covering expenses such as nursery fees, childminders, and holiday activity clubs. Lloyd stated, ‘Springtime is a good time to take a fresh look at family finances. A quick check online can reveal how Tax-Free Childcare significantly reduces childcare expenses, offering valuable financial support.’
Eligibility Criteria for Tax-Free Childcare
Families may qualify for Tax-Free Childcare if they:
- Have children aged 11 or under, with eligibility ceasing on September 1 following the child’s 11th birthday.
- Have a child with a disability, potentially receiving up to £4,000 annually until September 1 after the child’s 16th birthday.
- Earn, or anticipate earning, at least the National Minimum Wage or Living Wage for a minimum of 16 hours per week.
- Each earn less than £100,000 per year.
- Do not receive Tax Credits, Universal Credit, or childcare vouchers.
To explore available childcare options and determine the best fit for their family, parents can visit Childcare Choices on GOV.UK.
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