Martin Lewis urges parents to review their Tax-Free Childcare registration before missing out on government funding. The scheme provides £2 for every £8 deposited towards approved childcare, capped at £2,000 per annum. Lewis criticizes the scheme's name, suggesting 'Working Families Childcare Top-up' as a more accurate title.
Parents are being urged to take a crucial 20-minute Christmas check or they could miss out on £2,000 as the festive season approaches. It's essential for mums and dads to review their tax-free childcare registration this Christmas to avoid losing out on up to £2,000. Every year, an estimated 800,000 families fail to claim the benefit due to not signing up.
TV finance guru Martin Lewis urges parents to utilize the HMRC scheme, which provides £2 for every £8 deposited by families towards approved childcare, capped at £2,000 per annum. Eligible parents receive £500 from the state every three months, or even £1,000 for those with disabled children. Mr. Lewis highlighted the issue with the scheme's title: 'Tax-Free Childcare is appallingly named, DON'T let it confuse you. Calling the scheme Tax-Free Childcare was a political spin to ensure government gets credit for the scheme.' He continued, criticising it further: 'Unfortunately the name is appallingly misleading, and probably partly responsible for the scheme having a much lower take up than it should. It's not about tax in anyway, and isn't linked to the tax rate you pay. A better name would be 'Working Families Childcare Top-up', because it's effectively a discounted childcare savings scheme where you save and then pay for childcare with a 25% top-up.' Parents who qualify can claim up to £2,000 for each child annually, using the initiative to contribute towards a maximum of £10,000 of childcare costs per child every year – meaning an additional £2,000 per child, or up to £4,000 for a disabled child, each year, reports Birmingham Live. You can open an online Tax-Free Childcare account using your Government Gateway ID and for every 80p you contribute, the Government will top up your account. You'll need to earn at least the national minimum wage, but not more than £100,000 a year. This can be used for various childcare services – including after-school clubs and holiday activities, according to MSE
TAX-FREE Childcare CHILDCARE MARTIN LEWIS GOVERNMENT FUNDING WORKING FAMILIES
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