By Lyndsey Hall
Did you know there is a government scheme available that can help contribute towards childcare costs which may mean fewer of your employees will need time off at the same time this summer?
Tax-Free Childcare is a scheme available to working parents with children from 0-11 years and many parents are not taking advantage of the scheme. HMRC would thus welcome help from employers in changing that, so please tell your employees about Tax-Free Childcare and how it can reduce their childcare costs.
Eligible parents can get up to £2,000 per child, per year to spend on qualifying childcare (effectively a 25% top up). Note that Tax-Free Childcare isn’t just for everyday childcare costs, such as childminders and nurseries, parents can also use it to pay towards the cost of:
- After-school clubs
- Summer camps
- School holiday activities
The old childcare voucher scheme has now closed, only those who registered and were issued vouchers before the closing date may continue to use it. Tax-free childcare replaces the old scheme. Visit GOV.UK to see if you’re eligible for tax-free childcare and to register.