Working parents who fall under the income threshold to claim Tax-Free Childcare as a result of Covid-19 will be allowed to continue receiving relief, it has been announced.
According to HM Revenue & Customs (HMRC), eligible working parents who receive support through the Government’s new Job Support Scheme (JSS) or extended Self-Employed Income Support Scheme (SEISS) will continue to receive childcare entitlements – even if their income levels fall below the threshold temporarily.
To be eligible for the 30 hours free childcare offer and Tax-Free Childcare scheme, parents would usually have to earn equal to 16 hours per week at the national minimum wage.
Commenting on the changes, Karl Khan, Director General HMRC Customer Service, said: “HMRC remains ready to help all customers as part of the government’s response to the pandemic, including those who benefit from Tax-Free Childcare.
“We want everyone to get the money they are entitled to, and there’s a range of support available to help families with childcare costs. We’d encourage parents to check the Childcare Choices website to see which offers will work best for them.”
What is Tax-Free Childcare?
Parents eligible for the Tax-Free Childcare scheme are provided with an online childcare account. Through this account, the Government will pay you £2 for every £8 you deposit to be used to pay for approved childcare, such as childminders, nurseries, nannies, after school clubs and play schemes.