As schools return in Scotland, HM Revenue and Customs (HMRC) is reminding working parents they could save up to £2,000 per child per year to pay towards after-school clubs and other childcare services.
Around 110,000 families in Scotland are eligible for Tax-Free Childcare, which can cut thousands of pounds off childcare bills.
All families have to do is pay into their Tax-Free Childcare account and for every £8 that they deposit, the UK Government immediately makes a top-up payment of an additional £2. The scheme is open to working parents, including the self-employed, who earn between the minimum wage and £100,000 per year and have children aged 0-11 years old. Families with a disabled child, aged 0-17 years old, can receive up to £4,000 in government support each year.
Families in Scotland can choose from childcare providers that have signed up to Tax-Free Childcare, including nannies, nurseries, childminders or after-school clubs.
HMRC’s Deputy Chief Executive and Second Permanent Secretary, Angela MacDonald, said:
As more parents across the country return to work and kids head back to school following the outbreak of the Coronavirus pandemic, there has never been a better time to sign up to Tax-Free Childcare.
It takes just minutes to set up an account on our Childcare Choices website and soon you could be receiving up to £2,000 per child towards the cost of childcare each year.
UK Government Minister for Scotland, Iain Stewart, said:
Tens of thousands of families in Scotland are eligible to access savings towards after-school clubs and other childcare services thanks to the UK Government’s Tax-Free Childcare scheme. As more parents return to work and children to Scotland’s schools following the arrival of the COVID-19 pandemic, I urge people to make full use of the support. The scheme is part of a significant package of measures that the UK Government has in place to help families in Scotland.