Tax Free Childcare At Playbox
What is Tax Free Childcare?
Tax free childcare is a new government scheme offering around 2 million working parents help with their childcare costs. Eligible parents can now open an online account and use the money to cover the cost of childcare with registered providers.
For every 80 pence paid into the account the government will add 20 pence. This is the equivalent of the tax that most people pay. The government will top up will be limited to £2,000 per children per year or £4,000 if your child is disabled.
How long does it take for the government to add the 20% top up?
The bonus will be added to your account the same day that you put your contribution in. Eg If you were to put £8 into the account on Friday morning, by Friday afternoon the £2 government top up would be added, giving you £10 to spend on your childcare fees.
Who will be eligible?
Parents will be eligible if:
- Are 16 years old or more
- Live and work in the UK
- Do not receive tax credits or Universal Credit or childcare vouchers. (Child Benefit, child maintenance payments and free childcare for 2-4 year olds are unaffected)
- Are working – employed, self-employed, on paid sick leave, on paid or unpaid statutory maternity, paternity or adoption leave. If you are part of a couple, both of you must be working
- Earn at least £120 a week each on average unless
- You’re under 21 or an apprentice: you must expect to earn the equivalent of 16 hours at the National Minimum Wage rate that applies to you
- You’re self-employed and recently started a new business and are still in your ‘start-up’ period
- Do not expect to earn more than £100,000 each in the current tax year.
When can I get a Tax Free Childcare account?
You can apply for an account now if your child is under 4. Parents with a child who is under 4 and one is over 4 can apply for both children now.
Who can pay into my Tax Free Childcare account?
Anybody. If grandparents, family members or employers wish to add to the account they can. You are able to pay in more one month than in others and can withdraw the money at any time, you will lose the government bonus if you do not withdraw the money to spend on childcare.
Can I use my Tax Free Childcare account to pay my fees at Playbox Nursery and Playbox Pre-School?
Yes, both of the Playbox settings have signed up to accept payments from Tax Free Childcare accounts.
Can I use Tax Free Child Care and Childcare Vouchers?
No. Tax Free Childcare is intended to replace the current voucher scheme however you will be able to sign up to a voucher scheme until April 2018 and continue using it for as long as your employer offers it.
Which is better, Tax Free Childcare or Childcare Vouchers?
As you are unable to use both schemes you must choose which is better for your family. You can check what can be better for you using the government’s childcare calculator which can be found on https://www.gov.uk/childcare-calculator.
Can I use Tax Free Childcare alongside other schemes?
Yes, tax free childcare can currently be used alongside Free Early Education hours (15 hours) and 30 hours from September 2017. Tax Free Childcare is not compatible with the childcare element of Working Tax credits. Again you must decide which scheme is better for your family.
Where can I get a Tax Free Child Care account?
If you think you may be eligible for Tax Free Childcare log onto https://childcare-support.tax.service.gov.uk/par/app/applynow to apply now.
I still have some questions, where can I find out more?
If you still have any questions please call or email us on 01303 273 298 or firstname.lastname@example.org and we will try to answer any questions or queries.