Could you benefit from Tax-Free Childcare?
Last month saw a scheme which has the potential to offer major savings on childcare costs start to be phased in.
Tax-Free Childcare will be open to working families – defined as couples or individuals who are each expected to earn on average at least £120 per week – including self-employed workers.
Under the scheme, for every £8 a person pays towards childcare costs the Government will add a top-up of £2, up to an annual limit of £2,000 per child aged up to 11, or 16 if they are disabled.
This additional tax-free boost is currently available to children who will be under four on 31st August 2017 and disabled children, before being phased in over the next year for older children. It can be used to help pay for registered childminders, nurseries, nannies, after school clubs, registered schools and home care workers for a registered home care agency.
Families where one partner is expected to earn more than £100,000 per annum are not eligible.