Client Portal Independent financial planning advice for teachers

Teachers Logo
  • Home
  • Advice
  • About Us
  • Seminars
  • News
  • Downloads
  • Contact
Email
Home/News/Uncategorised/Are you claiming tax-free childcare?
loading...

Are you claiming tax-free childcare?

02/05/2019 Racheal Smith

Only a small proportion of families in the UK are claiming tax-free childcare, according to data released in December 2018 by the Government. The Department of Children and Families claimed that a mere 91,000 families took advantage of the scheme, which aims to help working parents.  As a teacher, you may feel you earn too much to benefit from this tax break.  However, it is for parents who make more than £120 a week and less than £100,000 a year.  Only the most senior ranks of teaching would fail to qualify, and even with a spouse’s salary on top, your teacher pay check is going to qualify you for tax relief.

How it works

For every £8 a parent pays into the tax-free childcare account, the government will add £2.  This is a 20% payment on money up to £2000 a year, £4000 if your child is disabled.

To be eligible your child needs to be under the age of 12 or 16 for a child with a disability.

You can open an online account for savings, which must be used to cover childcare costs.  This childcare could include nurseries, childminders, holiday clubs and even some after-school activities.

The point of the scheme is to support parents in providing children with the best start in life.  The Government accept that with only 7% of eligible families applying for the scheme in October 2017, more needs to be done to inform people of the right to claim this tax-free scheme.

The content in this article was correct on 22nd April 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on taxation. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.

Share this article:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
Posted under: Uncategorised

Tagged in: tax-free childcare



Make an enquiry

Please complete and send the short contact form below and we will come back to you as soon as possible.

    First Name

    Telephone

    Email

    Enter code captcha

    Message
    ifa logo
    Apple App Store Google Play Store
    • Site Map
    • Cookies
    • Legal
    • Privacy
    • Careers
    • Facebook
    • Google
    • Twitter
    • LinkedIn

    Teachers Financial Planning Limited is an appointed representative of LJ Financial Planning Limited which is authorised and regulated by the Financial Conduct Authority. Financial Services Authority firm registration number 552276. Content on this website is provided for information purposes only and should not be considered advice. The information contained within this website is subject to the United Kingdom regulatory regime and is therefore primarily targeted to consumers in the United Kingdom. Registered in England & Wales 07612896. Registered Office: St James Business Centre, Wilderspool Causeway, Warrington, WA4 6PS. Calls to 08452 69 69 90 cost 5p [or 5p per minute] plus your phone company's access charge.

    © 2011-2020 Teachers Financial Planning Limited.
    Website designed and developed by Carpe Diem
    This website uses cookies to improve performance: Find out more.