Press RoomSpecialist Tax News

Tax-free childcare scheme

This new idea will eventually be worth up to £1,200 per child, and so will save a typical working family with two children under 12 up to £2,400 a year.

It will not be phased in until Autumn 2015 and will ultimately be open to around 2.5 million families with children under 12. From the first year of operation, all children under 5 will be eligible so initially opening the scheme to 1.3 million families. The scheme will build up over time to include children under 12.

To be eligible, families will have both parents in work with each earning less than £150,000 a year, and will not already receive support through tax credits and later, Universal Credit. They will receive 20% of their yearly childcare costs up to £6,000 per child.

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