Help with Childcare Costs
You can get additional help for childcare through Tax-Free Childcare, Childcare Vouchers and Tax Credits
Throughout this year, the Government will be rolling out Tax-Free Childcare. The scheme allows parents to open an online bank account to pay registered childcare providers directly. For every £8 parents pay into these accounts, the Government will add £2.
The money can then be used to pay for day nurseries, pre-schools, registered childminders and school based care such as breakfast and after-school clubs.
Once the scheme is introduced, parents will be able to sign up online.
Warning - parents can't claim Tax-Free Childcare at the same time as claiming Tax Credits, Universal Credit or Childcare Vouchers. You will need to work out which scheme suits your family finances the best.
Please note - some families will be worse off taking Tax-Free Childcare over Childcare Vouchers.
Further information can be found at the following:
Gov.uk - 10 things parents should know about Tax-Free Childcare
Tax-Free Childcare Info Hub
Childcare Vouchers vs Tax-Free Childcare
Money Saving Expert - Childcare Voucher and Tax-Free Childcare
Your employer may be able to help you with childcare costs using childcare vouchers which are used to pay for registered and approved childcare. They can be used to pay for the care of children up 15 years old or 16 if they are disabled. Childcare vouchers are exempt from tax and national insurance for up to £55 per week, which could save you up to £1,196 per year.
The Childcare Voucher Scheme will close for new applicants by the end of March 2018. If you sign up for Childcare Vouchers before April 2018 you can remain on the scheme, and will be able to choose which is more cost-effective for you and your family.
If you are not currently taking Childcare Vouchers, you could consider joining now to have the choice later when the changes occur.
If you’re responsible for at least one child or young person, you may qualify for Child Tax Credit. Tax credits are payments from the Government.
As well as Child Tax Credit, you may be able to apply for Working Tax Credit if you work but have a low income.
Call Inland Revenue on 0845 300 3900 for an information pack and to check if you can receive Tax Credits. You can also use the online Tax Credits Calculator to work out how much money you could be entitled to.
The government provides a childcare calculator for you to get an estimate of how much you could get to help pay for approved childcare. As well as up to 15 and 30 hours free childcare it also calculates if you might be eligible for Tax Credits, Universal Credits, Tax-Free Childcare, Childcare Vouchers or help whilst you study.