chartered certified accountants
With many parents returning to work following the pandemic they should be encouraged to consider a tax free childcare account to help with their childcare costs.
With many parents working from home for part of the week tax free childcare accounts are more flexible than childcare vouchers.
Childcare vouchers continue to be available for employees who joined a qualifying scheme before 4 October 2018 and applies to children up to age 16.
Tax-free childcare can also be used at the same time as the 15 or 30 hours of free childcare in England.
Key points are:
Note that the tax-free childcare scheme is not available if either partner expects to individually earn more than £100,000 a year.
For every £8 paid into an online account, the government adds an extra £2, up to £2,000 per child per year (£4,000 for disabled children).
For example, for childcare costs of £500 per child per month, the family would pay £400 into their childcare account and the government would pay in £100 per child. This would be an annual saving of £1,200 per child.
The account can be used to pay for nursery fees, breakfast clubs, after school clubs, summer camps and OFSTED registered childminders
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