As the new school year approaches, HM Revenue & Customs (HMRC) is reminding working parents to take advantage of the Tax-Free Childcare scheme, worth up to £2,000 per child annually. To benefit in time for September, parents must apply and secure their childcare code before the 31 August deadline.
What the HMRC Reminder Means
The reminder is aimed at ensuring parents don’t miss out on this vital support. Through Tax-Free Childcare, the government adds £2 for every £8 parents pay into their account, up to a maximum of £500 every three months per child, or £2,000 per year. For children with disabilities, this support increases to £4,000 annually.
The scheme is open to children up to age 11, or up to 16 if the child has a disability. It also covers a wide range of approved childcare services, including nurseries, childminders, before and after school clubs, and holiday camps.
Application Deadline and Process
Parents must apply by 31 August to receive their childcare code, which is essential to start using the support in September.
- Applications are done online, and once approved, parents receive an 11-digit code.
- This code must be shared with their chosen childcare provider.
- Parents already receiving 15 free hours of childcare can reconfirm eligibility and upgrade to 30 hours by submitting their new code.
Key Benefits of Tax-Free Childcare
| Feature | Details |
|---|---|
| Government Top-Up | For every £8 paid, the government adds £2. |
| Annual Savings | Up to £2,000 per child, or £4,000 if the child is disabled. |
| Eligible Ages | Children up to 11 years old, or up to 16 years old if disabled. |
| Childcare Types Covered | Nurseries, childminders, wraparound care, after-school, and holiday clubs. |
| Reconfirmation Required | Parents must reconfirm eligibility every 3 months to continue support. |
Why Acting Now Matters
The upcoming school year start brings higher childcare demand, making this reminder crucial for families. With more than 75,000 providers now signed up to accept Tax-Free Childcare, parents have a wide range of choices.
Failing to apply before 31 August could mean delays in accessing support, potentially leaving families with unexpected out-of-pocket expenses as children head back to school.
The HMRC reminder is a timely call for families to act before the 31 August deadline. By applying now, working parents can unlock up to £2,000 per child per year in savings, with the added benefit of expanded access to wraparound care and holiday clubs.
This is a golden opportunity to cut costs and ease the financial pressures of the new school year.
FAQs
Who is eligible for Tax-Free Childcare?
Eligible parents must be working, earning at least the equivalent of 16 hours per week at minimum wage, and each earning under £100,000 annually.
What if I miss the 31 August deadline?
Missing the deadline may delay your ability to claim 30 free hours of childcare for the September term, causing financial strain.
Can I use Tax-Free Childcare with other schemes?
You cannot combine Tax-Free Childcare with childcare vouchers or Universal Credit childcare payments. Parents should review which scheme is best for them.