Did you know that 1.3 million parents are eligible for Tax-Free Childcare but only 20% of parents have signed up?
As many schools start the new term and parents go back to work, do all your parents realise that the Tax-Free Childcare scheme can subsidise their childcare costs and save them money? In addition, it is quick and easy to set up and your parents can start depositing money in their account before they return to work if they have had a gap in their employment. This could help expand your club by enabling parents to utilise more childcare and/or book additional sessions.
A quick reminder of the scheme's details
For every £8 a parent/carer deposits into their Tax-Free Childcare account they will receive a £2 top-up from the government, up to the value of £500 every three months or £1000 if your child is disabled. This essentially gives you the basic rate of tax back on your bill, hence the scheme's name. Parents create an online Tax-Free Childcare account using their Government Gateway ID, and then they are able to put the money into their account throughout the year, accruing the full top-up as they go. They can then spend it only when you need to, thus avoiding the £500 three-month limit. Although you do need to reconfirm that you're eligible for the scheme four times a year.
Parents can check their eligibility on the GOV.UK website, but here is a quick summary of the qualification criteria:
- Anyone can apply whether you are employed or self employed
- Children must be under 11 (or 17 if your child is disabled)
- If you have a partner, you both need to be in work to qualify
- Your provider must be registered with the Tax-Free Childcare scheme as well as with a regulator such as Ofsted, the Early Years Register or the Childcare Register to count as childcare
- You need to earn a minimum income of £140/week
- The maximum income you can earn is £100,000 per parent
