Working parents get reminder of Tax-Free Childcare scheme
As schools return in Scotland, working parents are being reminded that they could save up to £2000 per child a year to pay towards after-school clubs and other childcare services.
HM Revenue and Customs (HMRC) points out that around 110,000 families in Scotland are eligible for Tax-Free Childcare, which can cut thousands of pounds off childcare bills.
All families have to do is pay into their Tax-Free Childcare account and, for every £8 that they deposit,the UK government immediately makes a top-up payment of an additional £2.
The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 a year and have children aged up to 11 years.
Families with a disabled child, aged up to 17 years, can receive up to £4000 in government support each year.
Families in Scotland can choose from childcare providers that have signed up to Tax-Free Childcare, including nannies, nurseries, childminders or after-school clubs.
HMRC’s deputy chief executive and second permanent secretary, Angela MacDonald, said: “As more parents across the country return to work and kids head back to school following the coronavirus pandemic, there has never been a better time to sign up to Tax-Free Childcare.
“It takes just minutes to set up an account on our Childcare Choices website and soon you could be receiving up to £2000 per child towards the cost of childcare each year.”
UK government minister for Scotland Iain Stewart said: “Tens of thousands of families in Scotland are eligible to access savings towards after-school clubs and other childcare services thanks to the UK government’s Tax-Free Childcare scheme.
“As more parents return to work and children to Scotland’s schools following the arrival of the Covid-19 pandemic, I urge people to make full use of the support.
“The scheme is part of a significant package of measures that the UK government has in place to help families in Scotland.”
More information is available on the Childcare Choices website.