Tax-Free Childcare scheme supports UK parents
HMRC has released a reminder to parents about the Tax-Free Childcare (TFC) scheme intended to help pay for February half-term holiday clubs and wraparound care during school terms.
The TFC scheme provides an account which parents can pay into regularly to later use to pay registered childcare providers. For every £8 contributed by parents an additional £2 top up payment will be funded by the Government up to a maximum total of £10,000 per child per year.
This will give parents an annual savings of up to £2,000 per child (and up to £4,000 for disabled children until the age of 17) in childcare costs.
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Who is eligible for the scheme?
The TFC scheme is open to all parents with children aged up to 11 (17 for those with certain disabilities), including those who are self-employed or on minimum wage. In order to be eligible, parents will have to be in work at least 16 hours per week. If either parent earns more than £100,000 neither parent can use the scheme.
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