HMRC encourages families to take up help for childcare costs

HMRC has encouraged UK families not to miss out on government funding for childcare costs.

HMRC said families could save up to £2000 a year on childcare costs to help pay for half-term holiday clubs and wraparound care during the term.

Families are being urged to sign up for Tax-Free childcare to help pay for holiday clubs, before and after-school clubs, childminders and nurseries. The support is available to families with children up to the age of 11 and children up to the age of 17 if the child has a disability. The government will pay 20 per cent of costs by topping up the money paid into a Tax-Free Childcare account.

Accounts can be opened at any time of the year and can be used right away. Money can be deposited, spent and withdrawn at any time.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: "Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK."