Tax-Free Childcare helps 650,000 families save on their childcare costs
26 May 2023
The government's Tax-Free Childcare (TFC) initiative helped 649,935 families to save on their childcare costs during the 2022/23 tax year, HMRC has revealed.
Under TFC the tax relief available is 20% of the costs of childcare up to total childcare costs of £10,000 per child per year. The scheme is therefore worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for TFC for children under 12 (up to 17 for children with disabilities).
HMRC has reminded eligible families of the financial support available under the TFC scheme. TFC funds can be used to pay for approved breakfast and after school clubs, childminders, nurseries and holiday clubs.
Commenting on the matter, Victoria Atkins, Financial Secretary to the Treasury, said: 'While thousands more working families are benefitting from TFC, which is making a real difference to their childcare bills, many more are missing out on the help they're entitled to.
'Parents should check their eligibility and apply online; the top-up could make a big difference to working families at a time they need it most.'