HM Revenue and Customs (HMRC) is encouraging working families to sign up for Tax-Free Childcare, a scheme that can save parents up to £2,000 a year per child. The call comes as new figures reveal 601,620 families are already benefiting from the government scheme, which added £55.7 million in top-ups to accounts in June alone.
More than 600,000 families already saving
The latest data from HMRC shows that in June, 601,620 families received a share of £55.7 million in government top-ups, with each family getting an average of £93 added to their Tax-Free Childcare savings pot. The scheme works by adding £2 for every £8 parents deposit into their child's account.
Tax-Free Childcare helps working families with childcare costs by saving up to £2,000 per year for each child up to the age of 11, or £4,000 per year up to age 16 if the child is disabled. Parents can receive up to £500 (or £1,000 if their child is disabled) every three months towards their childcare costs.
Halloween half term savings
HMRC is urging families to sign up now to save on Halloween half term childcare plans and for the year ahead. The savings can be used to pay for approved childcare including nurseries for younger children, before and after school clubs, and activity clubs during school holidays.
Myrtle Lloyd, HMRC's Chief Customer Officer, said: "Paying for childcare while you work doesn’t have to be a nightmare for your bank balance this Hallowe’en. Tax-Free Childcare can make a real difference. Go to GOV.UK to find out more today."
Flexible accounts for families
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use whenever it's needed. Any unused money can be withdrawn from the account at any time.
The scheme is open to working families, and HMRC is highlighting the financial benefits as families plan for the upcoming school holidays. With more than £55 million of government cash added to accounts in June, the scheme continues to provide significant support to working parents across the country.
