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HMRC update on £500 tax free summer cash boost for parents

todayJune 19, 2022 1

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HMRC is encouraging working families in the UK to apply for a £500 tax-free boost to help with rising costs this summer. Working parents who have young or school-aged children could be missing out on as much as £1,000 every three months to help with childcare costs.

With only a few weeks left of the school term and the cost of living crisis worsening due to rocketing energy and fuel prices, as reported by the Daily Record this timely boost could help pay for holiday clubs and out-of-school activities over the summer. This weekend thousands of protesters gathered at rallies to demand action from the Government to combat the cost-of-living crisis.

The TUC says its research suggests workers have lost almost £20,000 since 2008 because pay has not kept pace with inflation. Tax-Free Childcare gives eligible households as much as £500 every three-month period — or £1,000 if their child has a disability — to put towards approved childcare schemes.

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For each £8 that is put into Tax-Free Childcare online account, recipients will get an extra £2 if they have a child aged 11 or under — or 17 if they are disabled. Parents and guardians have been urged to see if they are eligible for Tax-Free Childcare on the UK Government website.

HMRC’s Director General for Customer Services Myrtle Lloyd stated: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like nurseries, childminders and after school clubs.”

HM Treasury’s Exchequer Secretary to the Treasury Helen Whately commented: “It’s fantastic that more parents are taking up Tax-Free Childcare. This support provides a helping hand with childcare costs for working families.

“With over one million families eligible, I want to encourage parents to take advantage of Tax-Free Childcare and keep the extra pounds in their pocket.”

How does the scheme work?

It allows claimants to get 20 per cent extra on money deposited into accounts, which can be used to fund childcare. An account can be set up at any time, and is available to use immediately.

For example, if you have a child or children who are of school-age and attend holiday clubs over the summer, you could deposit money into the account during the year to spread the cost out — and would get an extra 20 per cent free. Any unused money that is deposited can be simply withdrawn at any time.

Pre-school children

You can also make use of the scheme if your children attend nurseries, childminders, or other childcare providers. Considering childcare costs for young children can be very expensive, the scheme may really help financially.

Childcare providers can also sign up for a childcare provider account via GOV.UK to receive payments from parents and carers via the scheme. HMRC is offering £500 tax free summer boost for working parents

Written by: thehitnetwork

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