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Britons have been advised to check whether they are eligible for up to £2,000 worth of assistance annually. HM Revenue and Customs ( HMRC ) has prompted parents to determine if they might be entitled to financial support with childcare costs. In a post shared on X, HMRC stated: "Could you be missing out on childcare savings?"Here's what you need to know! "Sign up for Tax-Free Childcare and save up to £2,000 a year per child on approved childcare costs." This funding is only accessible to couples whose combined income remains below £100,000 per year. Those who satisfy the requirements can obtain up to £500 every three months for each child to help with childcare costs. This totals up to £2,000 annually, reports the Mirror. The Government website explains that this rises to £1,000 quarterly if a child has disabilities (up to £4,000 per year). To access these funds, referred to as tax-free childcare, families must create an online childcare account for their child. For every £8 paid into this account, the government adds £2 to cover payments to your childcare provider. Tax-free childcare can be claimed alongside 30 hours of free childcare through Free Childcare for Working Parents if you satisfy the conditions for both programmes. What tax-free childcare can cover It can be used to pay for approved childcare, including: Childminders, nurseries and nannies After school clubs and play schemes If your child is disabled, the additional tax-free childcare funds you receive can be used to cover extra hours of childcare. These funds can also be utilised to pay your childcare provider for specialist equipment needed by your child, such as mobility aids. Who qualifies? Typically, you're eligible for tax-free childcare if you (and your partner, if applicable) are: Employed On sick leave or annual leave On shared parental, maternity, paternity or adoption leave Even if you're not currently employed, you may still qualify if your partner is working and you receive any of the following: Incapacity Benefit Severe Disablement Allowance Carer's Allowance or (only in Scotland) Carer Support Payment Contribution-based Employment and Support Allowance Over the forthcoming three months, both you and your partner (if you have one) must each anticipate earning at least: £2,539.68 before tax if you're 21 or older (equivalent to £195.36 per week) £2,080 before tax if you're aged between 18 and 20 (equivalent to £160 per week) £1,570.40 before tax if you're under 18 or an apprentice (equivalent to £120.80 per week) If you're self-employed and started your business less than a year ago, you can earn less and still qualify for tax-free childcare. If you hold more than one job, you can use your total earnings to determine if you meet the threshold. This includes: Earnings from any employment Earnings from any self-employment However, it's crucial to understand that if you or your partner have an expected "adjusted net income" exceeding £100,000 in the current tax year, you will not qualify. GOV.UK states: "Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday. "Adopted children are eligible, but foster children are not. If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday." For further details, visit the Government website here.
