What is the aim of the TFCS?
- To support eligible families with their childcare costs.
What is the financial benefit of the TFCS?
- For every £8 paid into the scheme by you, the Government will add an extra £2 up to a maximum of £2,000 per child per year (£4,000 for a disabled child).
- Mary has two children aged 5 and 7.
- Mary pays £400 a month into each of the two TFCS account
- The Government top up each TCFS accounts by £100 per month.
- An annual saving for Mary of £2,400.
What is the eligibility criteria?
- Your child must be 11 or under and usually live with you. They stop being eligible on 1st September after their 11th birthday.
- If your child is disabled then they must be 17 or under and usually live with you.
- Adopted children are eligible but foster kids are not.
- You must use an approved childcare provider who is set up to take payments through TFCS.
- You can be either employed or self-employed.
- You (or your partner, if you have one) must have a National Insurance number and at least one of the following:
b) Settled or pre-settled status, or you have applied and you’re waiting for a decision.
c) You have permission to access public funds – your UK residence card will tell you if you cannot do this.
- You will need to earn, on average, at least the National Minimum Wage/National Living Wage for at least 16 hours per week.
- If you have a partner, then they must do the same unless they receive:
b) Severe Disablement Allowance.
c) Carer’s Allowance.
d) Contribution-based Employment and Support Allowance.
- You or your partner’s total ‘adjusted income’ must be no more than £100,000 for that tax year.
- You cannot be in receipt of:
b) Child Tax Credit.
c) Universal Tax Credit.
d) Childcare vouchers.
How do you work out your ‘adjusted income’?
- This is your total income for the tax year, before taking off your tax free personal allowances, but after deducting:
b) Gift Aid payments
c) Certain pension contributions.
Who is deemed to be a ‘disabled’ child?
- If they are in receipt of:
b) Personal Independence Payment.
c) Armed Forces Independence Payment.
d) Child Disability Payment (Scotland only).
- They are certified as blind or severely sight-impaired.
What is meant by a ‘partner’?
- You are married or in a civil partnership and live together in the same household.
- You are living together as if you are married or in a civil partnership.
- You do not need to declare your partner if they are either:
b) In prison.
How do you find out if the childcare provider has been approved?
- It depends on which part of the UK you live, as per the link below:
Help paying for childcare – GOV.UK (www.gov.uk)
- Examples of approved childcare providers might be nurseries, childminders, nannies, after school clubs and play schemes.
How does the TFCS operate?
- You open up a Tax Free Childcare account for each child per the link below:
Apply for Tax-Free Childcare - GOV.UK (www.gov.uk)
- When setting up the account you confirm your eligibility.
- You should go back into the account to re-confirm your eligibility every 3 months. You will be notified to do so.
- Once money is paid into the account for that child it cannot be switched between other children in the family or elsewhere.
- There is no limit on the amount which can be paid into a Childcare account by you. HMRC will only top up payments to a maximum of £2,000 per child per year (£4,000 per disabled child).
- Payments can be made regularly, or as one-off payments by direct debit, standing order, electronic bank transfer or debit card
Who can pay into the account?
- Friends, family, employers etc. can make payments into the account, payments are not limited to the child’s parents.
info@togetherwecount.co.uk
www.togetherwecount.co.uk
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01273 569088
0114 400 0119
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