What is a Tax-Free childcare?
In the modern world, when working parents do not have help from aunts and grandmothers who work full-time and for mothers self-development and finance, which contribute to the household budget is bery important, it is worh to take care from the outside – nannies, nursery teachers, nurseries, etc.
Unfortunately – often the cost of employing a person to care for our little ones are much lower than the income of one of the parents – mostly women – and going to work does not pay, leaving the child in the care of a stranger, whose salary weaken our income. Sometimes keeping the kids become so expensive that it starts to outgrow your family budget – you can not afford to meet your’s family basic needs.
When you are expecting a baby in the UK, be sure to find out how it will affect your household budget.
To activate women in the labor market and reduce the frustration of parents, government in Britain invented the Tax-Free Childcare. This will be an invaluable help government!
What is a Tax-Free Childcare?
Tax-Free Childcare is government assistance (which of course would not be possible were not for taxes), through which it is easier to hire a person to help with the baby when we work full time. It consists in the fact that parents open a special account, which pay the money to provide child care.
For every 8 pounds paid by the parents, the UK government adds £ 2. For one child, you can get up to 2,000 pounds (the payment of 8000 pounds) per year! In addition, if your child has a disability, you can receive a grant up to 4,000 pounds (the payment to 16,000 pounds per year). No one tells you, however, what is the minimum amount, the rate at which you pay the money and so on. It’s your choice, depending on the needs of your household budget. Support starts from 2017 year!
Who is entitled to Tax-Free Childcare?
Parents, whose child is younger than 12 years, or – if it is disabled – less than 17 are entitled to Tax-Free Childcare. Each of the parents must work and earn at least 115 pounds per week. In addition, none of the parents can not earn more than 100,000 pounds a year. Parents of young children have priority in grants. Government assistance and the funds will be launched at the end of 2017- but it is worth thinking about today and apply to the program now
You live in an official partnership? If so, you need to know what is the Marriage Allowance.
Especially since you can do it online. Especially since the government gives money to people who pay taxes – so if you are working, so you must have help! What is important – you are entitled to it if you are the self-employed person, as the UK government wants to help enterprising people! If you just founded the company – do not worry that you don’t meet the minimum income: the government also will help you. If you are on sick leave, maternity leave, etc., and temporarily do not earn adequate amounts, you can also apply for the benefit.
The second condition that must be met is the fact that you must be an accepted member of the Childcare program.
If your life circumstances change and you need to pull money from the account, you can do it – of course, without a surplus, which was paid on a government.
How to Apply for Tax-Free Childcare and how to use your account?
Visit https://childcare-support.tax.service.gov.uk/ and follow the instructions on the page. Prepare your UTR number (if you are self-employed). You will find it, for example, on all documents coming from HM Revenue and Customs. On the website, you will also find a list of places where you can pay the funds deposited in the account.
Some people tell you that marriage is not profitable? So, find out the financial benefits of marriage in the UK.
Remember that you can apply for the program today. Annual operating profit on account money can be as high as 2,000 pounds at one child. With the talon is now 4,000 pounds a year, which can certainly raise the standard of living of your children. With this money, neither parent has also retired from work, because thanks to the introduction of this tax relief the government draws your expenses for a child up to 20%. This is another example of social relief in the UK, which you can use if you pay taxes – no matter whether you work for someone, if you are self-employed. It is worth benefiting from such measures because they facilitate daily life.
You can read other posts on my blog about other examples of money for which you can apply online and are related to the paid taxes.
If you are curious to this topic, check out the source:
NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.