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Dorset working parents invited to apply early for tax-free childcare (19 April 2017)

Date: 19/04/2017
Duncan Lewis, Family Solicitors, Dorset working parents invited to apply early for tax-free childcare

Dorset Council is inviting Dorset working parents of children aged under 12 (or 17 if children have a disability) to apply for tax-free childcare before other areas of the country.

The deadline for applications is 27 April – the government is trialling the scheme in Dorset early to help test HMRC’s application system.

In February, it was announced that Dorset parents of three- and four-year-olds were among the first to benefit from up to 30 hours of free childcare, ahead of the national rollout.

More than 1,000 Dorset families have expressed an interest in receiving free childcare hours so far.

When tax-free childcare rolls out nationally, parents of the youngest children will be invited to apply first – starting with parents of children under two years’ old and gradually reaching all eligible families by the end of the year.

However, until 27 April, working parents attending a childcare provider in the Dorset County Council area – but excluding Bournemouth and Poole – can register their interest early and start saving money on their childcare fees this summer, in time for summer holiday childcare.

Once parents have successfully registered, they will set up an online childcare account to pay their childcare provider directly – for every £8 parents pay into the account, the government will pay £2.

The most the government will pay is £2,000 per child per year – and £4,000 for children who have a disability.

Tax-free childcare can be used to pay for costs such as approved or registered childcare providers, including nurseries, pre-schools, childminders and also breakfast, after-school and holiday clubs.

The payments can also be out towards advance payments, block bookings and individual sessions, or the costs of employing a nanny.

Parents already claiming childcare vouchers or tax credits are not able to use tax-free childcare to pay for childcare.

The government has a childcare calculator to work out which scheme is best suited to families.

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