In January 2022, the government announced that it would be offering an additional top-up towards the cost of childcare. The top-up, worth up to \u00a32,000 per year, is available when parents sign up to Tax-Free Childcare.<\/p>\n
Tax-Free Childcare \u2013 the 20% childcare top-up \u2013 provides eligible working families with up to \u00a3500 every 3 months (or \u00a31,000 if their child is disabled) towards the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other accredited childcare schemes.<\/p>\n
Tax-Free Childcare is available for children aged up to 11, or 17 if the child has a disability. For every \u00a38 deposited into an account, families will receive an additional \u00a32 in government top-up.<\/p>\n
Tax-Free Childcare is also available for pre-school-aged children attending nurseries, childminders, or other childcare providers. Families with younger children will often have higher childcare costs than families with older children, so the tax-free savings can really make a difference.<\/p>\n
Each eligible child requires their own Tax-Free Childcare account. If families have more than one eligible child, they will need to register an account for each child. The 20% government top-up is then applied to deposits made for each child, not the household.<\/p>\n
Account holders must also confirm their details are up to date every 3 months to continue receiving the government top-up.<\/p>\n
If you are self-employed with children, we know that childcare is of the utmost importance to you. With this scheme, it becomes less of a worry. Tax-Free Childcare will enable you to carry on working where you may have had to take time off if you didn\u2019t have childcare.<\/p>\n
If you\u2019re self-employed, as long as, on average in the next three months, or across the whole current tax year, you meet the \u00a3152 a week minimum, you will qualify.\u00a0You must also earn less than \u00a3100,000 per year to qualify. However, if you\u2019ve been self-employed for less than 12 months, the minimum income requirement doesn\u2019t apply to you.<\/p>\n
Many of our customers are self-employed, so this scheme may benefit them. We help freelancers and contractors fully understand their financial affairs. We provide real-time financial status information and unique personal advice for each and every contractor.<\/p>\n