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Working families impacted by the pandemic to benefit from an extension to tax-free childcare

Posted on 13th August 2020 - Our news

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Working parents or carers who are eligible for Tax-Free Childcare or 30 hours free childcare, but have temporarily fallen below the minimum income requirement as a result of the pandemic, will continue to receive financial support until 31 October 2020.

Critical workers who may exceed the income threshold for the 2020 to 2021 tax year, as a result of working more to play a vital role in tackling Covid-19, will continue to receive support this tax year.

Through Tax-Free Childcare, delivered by HMRC, families will receive a £2 government top-up for every £8 they pay into their child’s account, up to the value of £2,000 per child or £4,000 per disabled child in financial support.

The money can be used towards the cost of qualifying childcare for a child up to the age of 11, or 17 for a disabled child.

To continue receiving the financial support for Tax-Free Childcare and 30 hours free childcare, parents need to reconfirm their eligibility every 3 months.

Parents and carers in receipt of the childcare element of Working Tax Credits who have continued to pay childcare fees they have incurred, despite their children being unable to access childcare because of Covid-19, must notify HMRC if they expect this to continue beyond 7 September. After this date HMRC will no longer pay the childcare element for those in this position.

Claimants should update HMRC as soon as possible if their childcare stops or if the costs for their childcare decrease or end.

Parents and carers can report such changes by calling the tax credits helpline on 0345 300 3900.

You can check your eligibility for Tax-Free Childcare or 30 hours free childcare in relation to Covid-19 online. If your childcare circumstances have changed recently, then log into your childcare account, check your details and reconfirm as usual to avoid delays later.

Parents and carers who are Working Tax Credits customers should check their eligibility and updated guidance relating to coronavirus online.

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