tax free childcare easter

Save on Easter Childcare Costs

Savings of up to £2,000 per child annually, or £4,000 for children with disabilities.

HM Revenue and Customs (HMRC) recently issued a reminder to working families about the potential savings on childcare costs available through Tax-Free Childcare ahead of the school holidays.

As the Easter break approaches, families who haven’t yet registered for Tax-Free Childcare could miss out on savings of up to £2,000 per child annually, or £4,000 for children with disabilities.

Approved Childcare

Tax-Free Childcare supports the cost of approved childcare for children aged 11 or under, or up to 16 for children with disabilities.

Parents can receive up to £500 every three months (£1,000 for children with disabilities) for every £8 contributed to their online account, with an additional £2 top-up automatically added by the government.

How long does it take to apply?

Applying online for a Tax-Free Childcare account takes just 20 minutes and can cover expenses for nursery, childminder, breakfast or after-school clubs, holiday activity clubs, specialist equipment for disabled children in childcare, and can be used in conjunction with 15 or 30 hours of free childcare.

Parents can deposit funds into their account as soon as it’s opened, ensuring it’s ready for use when needed, and can withdraw any unused funds at any time.

Who is eligible for Tax-Free Childcare?

Eligibility for Tax-Free Childcare includes families who:

  • Have children aged 11 or under (eligibility ends on 1 September after the child’s 11th birthday, or 16th birthday if the child has a disability).
  • Earn at least the National Minimum Wage or Living Wage for 16 hours a week on average.
  • Have an individual annual income of no more than £100,000.
  • Do not receive tax credits, Universal Credit, or childcare vouchers.

More information on eligibility is available on GOV.UK.

From April 2024, eligible working parents of 2-year-olds can access 15 hours of free childcare per week, expanding to 30 free hours for working parents of children from nine months to the start of school by September 2025. This could save families up to £6,900 per year using the full 30 hours.

Families can explore the childcare options available to them by visiting Childcare Choices.

Accountant York

Summary

FeatureDetails
Annual SavingsUp to £2,000 per child, £4,000 for a disabled child
Age EligibilityChildren aged 11 or under, up to 16 for children with disabilities
Government Top-Up£2 for every £8 deposited, up to £500 every 3 months (£1,000 for disabled children)
Application Time20 minutes online
Use ForNursery, childminder, clubs, specialist equipment for disabled children
Eligibility CriteriaChildren aged 11 or under, earning at least the NMW/Living Wage for 16 hours, annual income under £100,000, not receiving specific benefits
Free Childcare Offer from 202415 hours for 2-year-olds, expanding to 30 hours for children aged 9 months to school start by 2025
Potential Annual Savings (30 hours)Up to £6,900

Families are encouraged to explore their childcare options to find the best fit for their needs, potentially leading to significant savings and support.

How We Work

Working with us couldn’t be easier and we make switching simple

Step 1.

Book A FREE Consultation

Contact us to book your FREE initial consultation. We’ll work around times that best suit you.

Step 2.

Initial Discussion

We take the time to get to know you and your business, your challenges and expected outcome.

Step 3.

Recommend Options

We’ll review and present our recommended options in plain english with associated fees.

What’s Included

It’s important you make a good connection with your accountant. Your accountant will become an extension of your business, working with you, for you.

Our initial free consultation allows us to get to know each other and for us to understand your challenges. We’ll also explain how we think we can make a difference. Here’s what you should expect in your initial consultation.

  • Typical consultations take around an hour, so we won’t take up too much of your time.

  • Don’t worry about preparing lots of information for us ahead of the meeting, it is not necessary.

  • If you would like to send us your last return, we’ll happily take a look before we meet.

  • We can meet at your convenience. Out of hours and even weekends, just let us know.

  • There’s no obligation and we will happily answer any questions you may have.

Book a FREE Consultation

Please complete the form below and we will get back to you promptly.

Franks Accountants respect our customers privacy. Rest assured, we will never pass your details on to any other companies.