Parents of children aged 9 and under are now able to apply for Tax-Free Childcare support. All remaining eligible families with children under 12 can apply from 14 February. This means that all eligible parents will be able to apply for Tax-Free Childcare before the end of the financial year.
Parents, including those who are self-employed, can apply online for Tax-Free Childcare by visiting the Childcare Choices website. Parents can also access the government’s childcare calculator through Childcare Choices, which helps parents to choose which type of government childcare support is best for them.
Since opening the childcare service, through which parents apply for 30 hours childcare and Tax-Free Childcare, more than 325,000 customers have successfully applied and are now using the service.
The government initiative means that parents can pay up to £2000 a year in childcare costs, or £4000 if their child is disabled, without paying tax. The scheme is for parents of children up to the age of 12, or 17 for disabled children. To qualify, parents have to be in work, and each earn at least £120 a week (roughly equivalent to 16 hours per week at the minimum wage). Each parent must not have income over £100,000 per year.
There's more information in MyPACEY about how to ensure your setting is registered to accept Tax-Free Childcare.