Tax-Free Childcare is a UK-wide government scheme that helps parents with the costs of childcare. Here are some key points about Tax-Free Childcare:
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Eligibility: Your eligibility depends on your work status, income, childs age and circumstances, and immigration status. You can use the governments childcare calculator to check if youre eligible.
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How it works: For every £8 you pay in, the government will add £2, up to the value of £2,000 per child per year (or £4,000 for disabled children) . You can use the extra Tax-Free Childcare money to help pay for extra hours of childcare or to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids.
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Applying: You can apply for Tax-Free Childcare online. If youre eligible, youll get an online childcare account. You can use this account to pay your childcare provider(s) .
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Other benefits: If you successfully apply for Tax-Free Childcare, your Working Tax Credit or Child Tax Credit will stop straight away. You cannot apply for them again. However, you may be better off with Tax-Free Childcare depending on your situation.
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Limitations: You cant use Tax-Free Childcare together with Tax Credits, Universal Credit, or Childcare Vouchers. If youre receiving Tax Credits or Universal Credit, registering for Tax-Free Childcare will stop these benefits.
Overall, Tax-Free Childcare is a government scheme that helps parents with the costs of childcare. Its important to check your eligibility and compare it with other benefits you may be receiving to see if its the right option for you.