Working parents whose income falls below the minimum threshold for tax-free childcare as a result of the coronavirus will still be eligible for support, the Government has announced.
The change comes after parents raised concerns that they would fall short of the income threshold – usually equal to 16 hours per week at the National Minimum Wage (NMW) – if they were placed on the Government’s new Job Support Scheme (JSS) or received grants through the extended Self-Employed Income Support Scheme (SEISS).
It has now been confirmed that from 01 November 2020, any parent receiving support through one of the above schemes will continue to receive childcare entitlements, including the 30 hours offer and tax-free childcare, “even if their income levels fall below the threshold temporarily whilst on these schemes”.
Under the tax-free childcare scheme, the Government will pay you £2 for every £8 you deposit into your online childcare account to pay for approved childcare, such as childminders, nurseries, nannies, after school clubs and play schemes.
Commenting on the announcement, Karl Khan, Director General HMRC Customer Service said: “HMRC remains ready to help all customers as part of the government’s response to the pandemic, including those who benefit from Tax-Free Childcare.
“We want everyone to get the money they are entitled to, and there’s a range of support available to help families with childcare costs. We’d encourage parents to check the Childcare Choices website to see which offers will work best for them.”
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