HM Revenue & Customs (HMRC) is urging parents to take advantage of the Tax-Free Childcare scheme before the application window closes at the end of October. Families could be missing out on up to £2,000 per child annually if they fail to act.
What is Tax-Free Childcare?
The government-backed scheme helps working parents cover childcare costs for children under 12 (or under 17 for those with disabilities). For every £8 paid into an online account, the state adds £2 – up to £500 every three months (£2,000 annually).
Who qualifies?
- Working parents earning between £8,670 and £100,000 annually
- Self-employed workers meeting minimum income requirements
- Families with children in approved childcare (nurseries, childminders, after-school clubs)
Why act now?
With just weeks remaining before the 31 October deadline, HMRC warns thousands of eligible families risk missing out. "It takes just 20 minutes to apply online," says a spokesperson. "This support could make a real difference to household budgets."
How to claim
- Check eligibility on GOV.UK
- Set up a childcare account
- Make deposits and receive government top-ups
- Pay providers directly from the account
Unlike the older childcare vouchers scheme (now closed to new applicants), Tax-Free Childcare remains open but time is running out for this financial year.
