Tax-Free Childcare Vouchers – Claim up to £2000 per year towards your childcare costs at Banana Moon Bromley
Find out how to save money on your childcare costs
What is Tax-Free Childcare (TFC)?
If you’re a working parent or carer, you can get up to £500 every three months (up to
£2,000 a year per child) to help with the costs of childcare. For every £8.00 contributed to your Childcare Account, the government will contribute £2.00. Payment towards childcare costs will then be paid directly from your childcare account to your childcare provider – Banana Moon Bromley.
How much could I save?
For example, if your childcare costs are £750 per month, you would pay £600 into your childcare account and the government would pay in £150. This would be an annual saving of £1800 per child.
If you are eligible for Tax-Free Childcare, you can use it at the same time as:
Ø 15 hours funding
Ø 30 hours funding
When you pay into the account, the top up will be applied automatically.
Am I eligible?
To get Tax-Free Childcare, you need to be working at least 16 hours a week, earning at least the National Minimum Wage or National Living Wage (£152 per week). This includes being:
• self-employed
• on maternity or parental leave
• on sick leave or annual leave
Your child is eligible until the September after their 11th birthday, or until their 17th birthday if they have a disability. Each parent or carer can earn up to £100,000 per year and still be eligible for Tax-Free Childcare. Your eligibility doesn’t depend on how much tax you pay, so it won’t affect your
income tax liability or any other tax, like VAT.
You can’t claim Tax-Free Childcare at the same time as:
Ø Working Tax Credit
Ø Child Tax Credit
Ø Universal Credit.
Common Myths:
· It’s something to do with paying tax – NO
· There are “strings attached” – NO
· It must be paid back – NO
· There are hidden conditions – NO
· I must provide bank statements – NO
· It will take a long time to sign up – NO
· It will be complicated – NO
How do I sign up?
· You will need your national insurance number (and your partners, if applicable). If you are self-employed, you will also need your Unique Taxpayer Reference (UTR).
· You will need reconfirm your eligibility every 3 months, but you will receive an email reminder.
Where can I find out more information?
So, sign up today and start saving money!!
