THOUSANDS of parents can claim £500 free cash to help with childcare costs during the summer holidays.
Many families struggle with juggling work commitments and childcare over the long summer break, but there is support available to help keep your costs down.
Around 1.3million families could be eligible for a tax-free childcare account, which could save you hundreds of pounds on childcare costs during the summer holidays.
With these accounts, the government tops up any funds you put in to pay for childcare up to £500 in any three month period.
Despite the scale of the savings available, only 384,280 families were taking advantage of the scheme in March, meaning almost one million families are believed to be missing out.
The account can be used to pay for holiday clubs as well as childminders, nurseries and before and after school clubs during term time.
It can be used for children up to the age of 11, or 17 if a child has a disability.
Your childcare provider must be signed up to the scheme before you can pay them through the account, so check yours first.
Helen Whately, exchequer secretary to the Treasury, said: “Tax-Free Childcare helps families with the cost of childcare bills but we know that thousands of parents could be missing out.
“That is why I’m encouraging families to sign up now and save on childcare costs.
“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.”
The government will put £2 into the account for every £8 deposited, covering 20% of your childcare costs.
The benefit is capped at £500 every three months, but over a year the cash adds up to £2,000 for each child.
If a child has a disability this cap is increased to £1,000 every three months, or up to £4,000 a year.
A tax-free childcare account can be opened for children up to the September after their 11th birthday, or up to the age of 17 if they have a disability.
Parents will need to each earn at least the National Minimum Wage for 16 hours a week (£2,379 over three months for over 21s) and less than £100,000 a year.
You can still claim if you are on sick or annual leave and will be eligible if you’re on maternity, paternity, shared parental or adoption leave, as long as you’re planning to return to work within 31 days of your application.
If you’re not currently working, you could still be eligible if your partner works and you receive any of the following benefits.
You cannot claim under the scheme if you receive tax credits, Universal Credit or childcare vouchers.
A separate account needs to be opened for each eligible child.
Tax-free childcare accounts can be opened at any time and used to pay for childcare costs straight away.
To sign up online you’ll need your National Insurance number and your Unique Taxpayer Reference if you’re self-employed.
You’ll also need your child’s birth certificate reference number (if you have one) and the date you started or are due to start work.
Once the account has been opened, money can be deposited at any time and used when needed.
Any unused money can be withdrawn at any time.
Once you have opened a tax-free childcare account, you will need to reconfirm your eligibility every three months.
You’ll receive notifications via your personal email and childcare inbox reminding you to do this and it only takes a couple of minutes.
CHILDCARE can be a costly business. Here is how you can get help.
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