Are you a “stressed” out parent? Make sure you’re making full use of the tax-free childcare allowance

Parents have been reminded to make use of the £2,000 tax-free childcare allowance over the summer holidays to help with the cost of care.

The report, published by HM Revenue & Customs (HMRC), follows a recent poll which found that a third of British parents are “worried” about balancing work and school holiday childcare.

The relief scheme is available during all holidays, not just the summer, and can be used to help pay for regulated holidays clubs and activities.

Parents are required to pay into their childcare account, either over the year or as a lump sum. For every £8 a parent pays into the account, the Government will top it up by £2.

The funds can be used to pay for services from more than 58,000 registered childcare providers across the UK, which includes out-of-school activities and sports clubs, as well as childminder services.

Liz Truss, Chief Secretary to the Treasury, said: “Sorting out childcare over school holidays can feel like another chore for working parents. But the government has financial help available to cut the stress and bills for parents.

“To demonstrate our commitment, in 2019/20 the government will spend around £6 billion on childcare support – a record amount.

“Our message to eligible families across the UK is take a look at the Childcare Choices website and see how you can save on your childcare costs.”

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Karen Best

Karen Best

Tax Director at Clay Shaw Thomas
In Business: Tax planning In Life: Increasing my fresh air intake with my three reluctant children