Tax-free childcare now available to children under nine

15 February 2018

Tax-free childcare is a scheme designed to help working parents with the cost of childcare with up to £2,000 of support per child per year, or £4,000 per year for disabled children. HMRC started rolling out the scheme in April 2017 and from 15 January 2018 it has been made available to parents whose youngest child is under nine, or has turned nine on that date. All remaining eligible families with children under 12 can apply from 14 February 2018. This means that all eligible parents will have the opportunity to apply for tax-free childcare before the end of the current financial year.

Parents, including those who are self-employed, can apply online for tax-free childcare by visiting the government’s user-friendly Childcare Choices website. They can also access the government’s childcare calculator through the website, which is designed to help them choose which government childcare support is most appropriate.

According to government reports, since opening the childcare service, through which parents apply for 30 hours free childcare and tax-free childcare, more than 325,000 people have successfully applied and are now using the service. Of these, more than 170,000 have opened a tax-free childcare account.

For further information about this topic, please contact me or speak to one of our accountants in Newcastle, Jarrow or Sunderland.

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