In a recent blog, we looked at who is eligible for the government’s 30 hours of free childcare per month, which launched in September. Today we’re taking a look at another government initiative – tax free childcare – which is designed to help parents go out to work.
What’s it all about?
The tax-free childcare initiative is actually an online savings account that enables parents to save up funds for childcare. It is considered tax-free because for every £8 paid into the account, parents get a £2 top-up from the government, equivalent to 25% extra. The government will pay a maximum of £2,000 in any one year, meaning that under the scheme, annual childcare costs of £10,000 would cost £8,000 to parents. For disabled children, the figure rises to £4,000.
Who is eligible?
To claim, parents must be working parents paying for registered childcare for children under 12, or 17 for disabled children. As with the 30 hours of free childcare scheme, parents must earn £120 per week (or £6,000 per year) for each parent over 25 years old, or £112.80 a week (£5,800 per year) for each parent between 21 and 24 years old.
Self-employed parents can average income across a year to meet the minimum earning requirement. If a parent has a partner, he or she needs to be working for the family to claim. An adult who is not the parent may also claim if the child usually lives with them. Also in common with the 30 hours scheme, families with one parent earning more than £100,000 per annum are not eligible to open a tax-free account.
How do I apply?
The scheme began in September – the same time as the 30 free hours initiative – and the good news is you can apply for both of them with a single application. The government has set up a website for this purpose. You can find it at www.childcarechoices.gov.uk. However, do be warned, the website has been beset with problems and been the subject of significant, negative, national media attention.
But our advice is not to let that put you off. Both the tax-free childcare scheme and the 30 free hours add up to significant savings for working families and if you choose to invest those at Tiptoes, you will be giving your child the best possible care in the most cost-effective way. So, get those applications in ASAP and don’t miss out on all the childcare benefits you’re entitled to.
See below to find the Tiptoes Day Nursery most convenient to you. Get in touch to book your visit!
OUR NURSERIES NEAR YOU …
Tiptoes Waterside Nursery enjoys views over the Humber Estuary and of the iconic bridge. It’s purpose-built and has great links with local primary schools and Hessle Mount School. It’s on the Waterside Business Park, so has great access to the A63. It has secure parking and a fully secure outside play area.
Tiptoes Bricknell Nursery has a fantastic reputation and enjoys great links with all four local primary schools. Bricknell is in a good position, with the avenue being a major secondary route between west Hull and villages and Hull. It has secure private parking, landscaped gardens and a fully secure outside play area.
Tiptoes Bridgehead is one of the most environmentally friendly nurseries in the UK. It’s purpose-built and located on the prestigious Bridgehead Business Park, the UK’s greenest business park. It has great access to the A63, A164, and the Humber Bridge. We’re next to trees and a woodland walk designed with the Yorkshire Wildlife Trust.
Our Tiptoes Bishop Burton Nursery is located on the grounds of the prestigious Bishop Burton College, so has excellent links to the A1079 and Beverley. The purpose-built nursery has 54 places and is located at the front of the campus while being hidden in the outdoors among some beautiful woodland.
Tiptoes Willerby opened in 2016 and already has a fantastic reputation and good links with local primary schools. It’s designed by us and built for us and has landscaped gardens and secure outdoor play area. It’s in an excellent location on Gorton Road, between Anlaby and Willerby, near Haltemprice Leisure Centre.
We are always looking for new locations so we can grow the Tiptoes family.