Rise Park Out of School Club
Help with Childcare costs
Ministers are pressing on with plans to offer up to £1,200 a year tax relief per child to around 2.5 million households with two earners on up to £150,000 a year each. It is due to come into effect by 2015 for under-fives, extended to under-12s by 2020, helping up to 2.5 million families where both parents work, or the lone parent in the household works.
The childcare element of the working tax credit helps parents who work at least 16 hours per week.
It pays up to 80% of registered or approved childcare costs, depending on parents’ income. The maximum help you could get is £140.00 (80% of £175) per week for one child and£240.00 (80% of £300) for two or more children.
Childcare vouchers are a way employers can help employees with childcare costs. Employees can choose to take up to £50 a week of their salary as childcare vouchers and don’t have to pay tax and national insurance on that money, saving them around £800 to £1,000a year.
Parents then pay the vouchers to the childcare provider instead of cash.
For more information on the Child tax Credit and/or Working Tax Credit visit:
www.hmrc.gov.uk/childcare or call 0800 096 0296.
If deciding to use childcare vouchers you will need to quote our OFSTED No: EY332199