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Tax-free childcare scheme

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HMRC has issued a reminder that working parents can use the tax-free childcare scheme to help pay for childcare costs over the summer. The scheme operates by providing a government top-up to money deposited into a childcare account, with the funds available to pay for childcare costs which could include accredited holiday clubs, childminders or sports activities.

HMRC notes that more than 282,000 working families used their account in March 2021 – the highest take-up since the scheme started in April 2017 – although this represents only 48.4% of the number of open childcare accounts, suggesting that HMRC is keen to promote use of the scheme and awareness among advisers and employers.

Issue: 1536
Categories: News