HMRC is reminding families not to miss out on the financial support offered by its Tax-Free Childcare (TFC) scheme.
Under Tax-Free Childcare, the tax relief available is 20% of the costs of childcare up to total childcare costs of £10,000 per child per year. The scheme is therefore worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for Tax-Free Childcare for children under 12 (up to 17 for children with disabilities).
HMRC reported that more than 384,280 families used Tax-Free Childcare in March 2022, which represented the highest number recorded since the scheme was launched in April 2017.
Research published by HMRC earlier this year found that 1.3 million families could be eligible for TFC.
Helen Whately, Exchequer Secretary to the Treasury, said: ‘TFC helps families with the cost of childcare bills, but we know that thousands of parents could be missing out.
‘There are lots of fantastic holiday clubs and childcare providers to help working parents during the upcoming summer holidays, so now is the time to take advantage of this support.’
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