Martin Lewis issues ‘reminder’ on tax-free childcare but you may not be eligible – why? | Personal Finance | Finance
Martin Lewis had Mother’s Day on the mind in his most recent Money Show episode, as he urged mothers and families to take action. This was noted to be especially important as children begin to head back to school and childcare.
As Martin concluded in the final section of the show: “And finally, with lots of kids going back to childcare at the moment, if you’re using the tax free childcare scheme that effectively gives you 20 percent off childcare so you’re not going to get it from pre tax income.
“You need to confirm it every three months and you may not have done that if your child’s been off due to the pandemic, as many have been, so just a quick reminder on that.”
Tax-free childcare support from the Government will allow people to get up to £500 every three months for each of their children to help with the costs of childcare.
This goes up to £1,000 every three months if a child is disabled.
READ MORE: Martin Lewis questions Rishi Sunak on Universal Credit
However, it is not possible to get tax-free childcare at the same time as claiming working tax credit, child tax credit, Universal Credit or childcare vouchers.
Evidently, there are many support measures in place for raising children and as such, the Government provides a free-to-use childcare calculator to work out which type of support would be most beneficial.
If a person successfully applies for tax-free childcare, their working tax credit or child tax credit will stop straight away.
Additionally, it will not be possible to apply for them again.
Holders of this account will then be able to pay their provider with money from it once the money is shown as “cleared funds”.
The payments should show in a provider’s account within 24 hours.
As part of the application, claimants will also find out if they’re eligible for 30 hours of free childcare.
These details could be shown straight away but it can also take up to seven days to process.