Your Guide to Tax-Free Childcare

 As Bonnie Bear is Ofsted registered, we are pleased to inform you that we can accept Tax-Free Childcare as a payment option for your childcare needs.

Tax-Free Childcare can be a fantastic choice for parents, but we completely understand that the process of setting it up and using it can seem a bit overwhelming at first.

We are committed to providing your child with the very best start in life, while also making life a little easier for you.

If you find any aspect of Tax-Free Childcare confusing, we’re here to assist you in any way we can.

Feel free to reach out to our management team to discuss the hours and funding that suit your needs.

What is Tax-Free Childcare?

Tax-Free Childcare is a government initiative designed to help working parents manage their childcare expenses.

Eligible parents can benefit from up to £2,000 per child per year, or £4,000 if the child has a disability.

It’s important to note that if you claim Tax-Free Childcare, you are not able to claim Childcare Tax Credit or Universal Credit at the same time.

• Here are the families that can benefit from Tax-Free Childcare:
• Families with children aged 0-11 years (or 0-16 years if they have a disability).
• Working families living in the UK.
• Families who are not receiving Childcare Vouchers, Universal Credit, or Tax Credits.
• Parents earning at least the National Minimum Wage or National Living Wage for at least 16 hours a week
• Those earning under £100,000 per year.

To learn more, please visit the Government’s Childcare Choices website: www.childcarechoices.gov.uk

How does Tax-Free Childcare work?

To get started, you will need to set up an online childcare account for your child. For every £8 you contribute, the government will add an extra £2.

This means you effectively receive 20% extra funds – that’s like getting back the basic rate of tax on your spending through your childcare account.

You can use these funds to help cover your childcare costs.

Just remember, you’ll need to reconfirm your eligibility every three months. The government will send you a reminder via text message, and it’s really straightforward to do through your childcare account.

Am I eligible for Tax-Free Childcare?

To qualify for Tax-Free Childcare, you must be working at least 16 hours a week and earning at least the National Minimum Wage or National Living Wage.

This includes: – Self-employed individuals – Parents on maternity or parental leave – Those on sick leave or annual leave Your child remains eligible until the September following their 11th birthday or until their 17th birthday if they have a disability.

Each parent or carer can earn up to £100,000 per year and still be eligible for Tax-Free Childcare.

Your eligibility isn’t based on the amount of tax you pay, so there won’t be any impact on your income tax or any other taxation matters.

Remember, you cannot claim Tax-Free Childcare simultaneously with Working Tax Credit, Child Tax Credit, or Universal Credit

Find Out More About Your Childcare Funding Options If you’d like to find out how much support you could receive towards your childcare costs and check your eligibility, don’t hesitate to visit www.childcarechoices.gov.uk