Tax free childcare

Tax Free Childcare

Tax Free Childcare Facts Every Parent Should Know
About 2 million households can now enjoy the benefits of tax free childcare to assist in childcare cost. It aims to give parents the chance to start a job, if they prefer, in order to give better security for all members of their family.

Since this scheme is still new to most parents, there are several things you have to know about tax free childcare.

You Can Open Your Own Online Account
You can now open your own online account and you can pay this to cover childcare cost with an authorized provider. It is done through the official government website.

The tax free childcare scheme is going to be rolled out little by little to families and parents of youngest children are the ones who can apply first. You can apply for all your kids simultaneously once your youngest child is deemed eligible. By the end of 2017, all the eligible parents can already join in this scheme.

Available for Kids 12 Years Old and Above
Tax free childcare is available for kids age 12 and above and is also available for kids with disabilities up to 17 years old since the costs for their care can remain high during their teenage years.

For Each 80p You or Someone Else Will Pay in, Extra 20p Will be Topped up by the Government
It is equivalent to the 20% tax that most people pay, giving the scheme the name “tax free.” The government is going to top up the account with 20 percent of the costs of childcare to as much as £10,000 which is the equivalent of about £2,000 support for every child annually or £4,000 for the disabled children.

Eligible Working Families Can Use Tax Free Childcare
The tax free childcare program doesn’t rely on the employers who offer this scheme, which makes it different from the current Employer-Supported Childcare system.

All working families can make the most out of tax free childcare as long as they can meet all the requirements for eligibility.

Parents Have to Work to Quality, With Both Earning a Minimum of £115 Every Week and Not Over £100,000 Each Annually

This has been designed to be made flexible for the parents if, for instance, they choose to go back to work after working part time or giving birth to a child.

Tax Free Childcare is Available for Self-Employed Parents
Self-employed parents can get support from this scheme for childcare costs. This is unlike the current Employer-Supported Childcare system which is not available to the self-employed parents.

As a support for the newly self-employed parents, there is also a startup period offered by the government. During this stage, the self-employed parents don’t need to earn the minimum level of income.

This scheme is also available to those parents who are on paid sick leave as well as unpaid and paid statutory paternity, maternity and adoption leave.

With the introduction of Tax-Free Childcare, more parents can now have the peace of mind knowing that their family can look forward to an improved financial security.