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Help with childcare costs: how to stop missing out if you can claim tax-free allowance

HMRC is urging nurses who pay for childcare to claim support worth up to £4,000
Toddlers in a daycare setting – nurses urged to claim tax allowance if they pay for childcare

HMRC is urging nursing staff who pay for childcare to claim support many of them will be entitled to find out how

Nursing staff with young children are being urged to check if they are eligible to claim an annual allowance worth between 2,000 and 4,000 to help with childcare costs.

The tax-free childcare allowance is for working parents or carers of children aged up to 11, or 17 if their child has a disability.

How the tax allowance works

For every 8 parents or carers deposit in the scheme for each child, 2 will be added by the government to the value of 500 every three months, or 1,000 for children with disabilities. That adds up to

HMRC is urging nursing staff who pay for childcare to claim support many of them will be entitled to – find out how

Toddlers in a daycare setting – nurses urged to claim tax allowance if they pay for childcare
Picture: iStock

Nursing staff with young children are being urged to check if they are eligible to claim an annual allowance worth between £2,000 and £4,000 to help with childcare costs.

The tax-free childcare allowance is for working parents or carers of children aged up to 11, or 17 if their child has a disability.

How the tax allowance works

For every £8 parents or carers deposit in the scheme for each child, £2 will be added by the government to the value of £500 every three months, or £1,000 for children with disabilities. That adds up to £2,000, or £4,000 for a child with a disability, to help meet childcare costs.

Her Majesty's Revenue and Customs (HMRC) is making a direct appeal to nursing staff to sign up for the allowance – it seems likely many will be part of the almost 800,000 UK households who are missing out. According the 2020 NHS Staff Survey in England, 39% of respondents said they cared for children aged 17 or under.

An HMRC spokesperson said: ‘Tax-free childcare is a great offer for working parents, and we continue to encourage eligible nurses to sign-up for it.’

Apply here for tax-free childcare allowance

Are you eligible for the tax-free childcare allowance?

You can usually get tax-free childcare allowance if you, or your partner are:

  • In work, including during annual leave, sick leave, and while on shared parental, maternity, paternity or adoption leave

You cannot get the allowance at the same time as claiming:

  • Working tax credit
  • Child tax credit
  • Universal credit
  • Childcare vouchers

HMRC childcare assistance calculator

(Adapted from HMRC information)


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