Saving your clients/employees money on childcare costs
17 May 2019
The uptake of Tax-Free Childcare (TFC) has not been as high as the Government had initially forecast and therefore there are many parents who could be missing out on assistance with their childcare costs.
Are you able to communicate information to clients or employees?
Tax-Free Childcare is a government scheme available to working parents, including the self-employed, with children aged 0 to 11.
Eligible parents can get up to £2,000 per child per year towards qualifying childcare. For clients with 2 children, it could mean a £4,000 saving per year on the family’s budget.
Parents can use it on a wide range of registered childcare, including:
breakfast clubs, after-school clubs and holiday clubs.
For disabled children, the scheme is available up to the age of 16 with a maximum government contribution of £4,000 per child per year.
Support with childcare costs can be a complex area as the Government offers different types of support and some interact with Tax-Free Childcare.
The Low Income Tax Reform Group (LITRG) has useful information on its website that you can signpost contacts to about how TFC interacts with other schemes.
Please tell your clients/employees to visit Childcare Choices to find out more information on how their childcare costs could be reduced and how to apply.