Tax Relief on Childcare Fees Reminder
Published / Last Updated on 02/09/2021
As covid-19 restrictions lift, furlough ends and people return to work. This week we also see a full return to schools and childcare across the UK, Scottish children are already back.
As a timely reminder, please note that if you work and have to pay for pre-school or afterschool childcare, you may qualify for tax relief on childcare costs. The requirement being that you have to re-register every 3 months to qualify. If you have been on holiday or indeed the school holidays or have been working from home or furloughed, so you have not needed childcare, you may need to re-register to qualify.
- Apply for Childcare account or Re-register now at https://www.childcarechoices.gov.uk/
- You need to re-register your claim every 3 months
- You must be using childcare providers, nannies, nurseries, school clubs that are also registered
- 20% tax relief on childcare for every £8 you put in, the government will add £2
- Parents, family and friends can pay in. The relief is added to the account automatically.
- Maximum £2000 per child per year up to age 11
- Maximum £4000 per disabled child per year up to age 17
- Parents then pay for childcare by sending funds from their childcare account to the childcare provider’s account.
- You must be working at least 16 hours per week on at least minimum/living wage £8.91ph (£1,853 per quarter)
- If you or your partner has adjusted income over £100,000pa (after private pension contributions) then you will not qualify for childcare tax relief.
