Businesses urged to inform staff of tax-free childcare
Employers are being advised to assist employees with covering the costs of childcare, with the school holidays in full swing.
Parents who earn more than £131 a week and less than £100,000 a year are eligible for tax-free childcare.
The scheme offers up to £2,000 a year towards a child under the age of 12, or £4,000 a year for a disabled child under 17.
Eligible parents need to open an online account, and the Government will add £2 for every £8 saved up to the thresholds.
The scheme can be used to pay more than 58,000 childcare providers in the UK, including childminders, nurseries, and sports camps running this summer.
The Government has urged businesses to help employees sign up for the scheme, which may mean fewer members of staff need time off between July and September.
Statistics released by HMRC earlier this year showed parents have been slow to embrace tax-free childcare.
Despite an estimated 1.5 million families in the UK being eligible for the scheme, only around 125,000 had taken advantage of it by March 2019.
Nahid Khan, editor of HMRC’s employer bulletin, said:
“Some parents are still missing out on the benefits of tax-free childcare and how it can reduce their childcare costs. We would welcome some help from employers in changing that.”
To apply for the scheme, visit: www.childcarechoices.gov.uk
Speak to us about tax-free childcare.