The Government believe that there is a lack of awareness about tax free childcare accounts with HMRC estimating that less than 22% of families that are eligible have joined.
Parents returning to work following the pandemic should set up a childcare account to help with childcare costs.
Tax free childcare is available for working families who are not receiving tax credits, universal credit or childcare vouchers.
Key Points
- Earning at least £142 per week each
- Wo are not receiving tax credits, universal credit or childcare vouchers
- With children aged0-11 (or 0-16 if disabled)
- For every £8 you pay into an online account, the government will add an extra £2 up to £2,000 per annum. (£4,000 for disabled children)
- If you are separated you and your ex-partner need to decide who should apply if you are jointly responsible for your child.If you cannot decide, both of you must apply separately and HMRC will decide who gets a childcare account.
The tax free childcare scheme is not available if either partner expects to individually earn more than £100,000 per annum
For Example, for childcare cost of £500 per child per month, the family would pay £4000 into their online account and the government would pay in £100 per child. This would be an annual saving of £1,200 per child.
The account can be used to pay for nursery fees, breakfast clubs, after school clubs, summer camps and ofsted registered childminders.
Our BLOG
What are venture capital trusts (VCTs) and how to use them safely
TESTIMONIALS
The staff at CST are always very friendly and approachable.… Read more “Mr JD Dolling, SW Heating Equipment Ltd”
We have been with CST for more than seven years… Read more “Doris Francis, Engineering Services (Bridgend) Ltd”
Our business has been handled by CST for many, many… Read more “Mr & Mrs Rise”
I moved my business to Clay Shaw Thomas because I… Read more “Sandra Wilkinson of Sage Marketing”
The audit was well planned and executed efficiently, with minimum… Read more “GE Carpentry”
Privately and within the company Clay Shaw Thomas provides a… Read more “Seashore Enterprises”
I am very happy with the service from CST. An… Read more “Mr Atkinson “
The family connection with CST goes back many years and… Read more “Dr Jones”
CST are very efficient, courteous and proactive when dealing with… Read more “Mr CMG Adams”
I have been a client for over twenty years and… Read more “Mr J T Wall”
Always one step ahead of the game, CST have helped… Read more “Mr RT Evans”
CST Staff always give unbiased advice in a clear and… Read more “Mr L Branfield”
It has been a professional pleasure working with CST, they… Read more “Mr P Jenkins”
SUBSCRIBE to our list
If you would like to see full details of our data practices please visit our Privacy Policy and if you have any questions please email info@cstwealth.co.uk.