HMRC urges families to make use of Tax-Free Childcare scheme

30 Jun 2022

HMRC is reminding families not to miss out on the financial support offered by its Tax-Free Childcare (TFC) scheme.

Under TFC, the tax relief available is 20% of the costs of childcare up to total childcare costs of £10,000 per child per year. The scheme is therefore worth a maximum of £2,000 per child (£4,000 for a disabled child). Parents are able to apply for TFC for children under 12 (up to 17 for children with disabilities).

HMRC reported that more than 384,280 families used TFC in March 2022, which represented the highest number recorded since the scheme was launched in April 2017.

Research published by HMRC earlier this year found that 1.3 million families could be eligible for TFC.

Helen Whately, Exchequer Secretary to the Treasury, said: 'TFC helps families with the cost of childcare bills, but we know that thousands of parents could be missing out.

'There are lots of fantastic holiday clubs and childcare providers to help working parents during the upcoming summer holidays, so now is the time to take advantage of this support.'

About us

Higgisons was formed by John Higgison in Oxford Street in 1965 and was originally part of the Accountancy Tuition Centre until James McHale became managing partner and the firm moved to its City Road premises in 1982.

We like to become involved at the planning stage of the formation of a business venture to ensure that it is structured as flexibly and efficiently as possible so that it can cope with changes in legislation or personal circumstances.

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