Childcare cost support from HMRC

Childcare cost support from HMRC

The beginning of September always brings a new routine for parents as children start going back to schools and nurseries.


With that, more employees are going back to work full time due to the withdrawal of CJRS support and less working from home as more of the country receive their vaccinations.


For these reasons parents may need to start thinking about childcare.
HMRC have issued a reminder that there is support available for families towards their childcare costs.


Parents and carers are encouraged to set up a “Tax-Free” Childcare Account to help pay towards the cost of childminders, breakfast and after school clubs, nursery fees and approved play schemes.


For every £8 an eligible family pay into the special account the government adds £2, up to £2,000 a year, or up to £4,000 a year if a child is disabled.

The scheme is available to parents or carers who have children aged up to 11, or 17 if their child is disabled.


Parents can get Tax-Free Childcare in addition to 30 hours free childcare if they are eligible for both.


If the employee or their partner have an expected net income over £100,000 in the current tax year, they will not be eligible.
This includes any bonuses they expect to get.


If you’d like to calculate what you would be eligible for, use HMRC’s online calculator here:


If you need more information for yourself or your employees on how HMRC can help with childcare costs, please call us on 01482 888820.