British BulletinBritish Bulletin
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Lifestyle
  • Health
  • Sports
  • Tech & Science
  • Travel
  • Spotlight
  • More
    • Press Release
What's On

Teacher caught pretending to be unwell in order to work at another school

24 June 2026

Lord Hermer orders staff to stop using X over ‘racism and misogyny’

24 June 2026

Blue Diamond boss warns Ed Miliband’s rules will cost garden centre chain ‘millions’

24 June 2026

Who could be the UK’s next chancellor? | UK News

24 June 2026

World Cup 2026: Should Ghana have had penalty against England for Ezri Konsa tackle??

24 June 2026
Facebook X (Twitter) Instagram
Web Stories
Facebook X (Twitter) Instagram
British Bulletin
Subscribe
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Lifestyle
  • Health
  • Sports
  • Tech & Science
  • Travel
  • Spotlight
  • More
    • Press Release
British BulletinBritish Bulletin
Home » HMRC reveals record number of families now using tax trick worth up to £2,000 a year
Business

HMRC reveals record number of families now using tax trick worth up to £2,000 a year

By britishbulletin.com23 June 20263 Mins Read
HMRC reveals record number of families now using tax trick worth up to £2,000 a year
Share
Facebook Twitter LinkedIn Pinterest Email

A record 868,095 families are now benefiting from Labour’s Tax-Free Childcare scheme, with HM Revenue and Customs (HMRC) revealing it contributed almost £600million in top-up payments during the 2025-26 tax year.

The latest figures show more households than ever before are using the scheme to help reduce childcare costs.


The tax authority is encouraging more eligible families to check whether they qualify for support, particularly with the summer holidays approaching when childcare expenses can increase significantly for working parents.

Under the scheme, the Government adds £2 for every £8 paid into a Tax-Free Childcare account by parents.

Eligible families can receive up to £500 every three months towards childcare costs, providing savings of up to £2,000 a year for each child.

Families with disabled children can receive enhanced support, with Government contributions of up to £1,000 every three months, amounting to a maximum annual payment of £4,000 per child.

The funds can be used to pay for approved childcare providers, including nurseries, childminders, before and after-school clubs and holiday activity schemes.

Parents of disabled children can also use the money to help cover the cost of specialist equipment required by their childcare provider.

HMRC Tax-Free Childcare: Record 868,095 families claim support worth up to £2,000 a year

|

GETTY

Myrtle Lloyd, HMRC’s chief customer officer, said: “I’m so pleased these figures show more families than ever are using Tax-Free Childcare to save on their bills.

“£2,000 is not a small amount and it can make a real difference especially with the childcare void of the summer holidays approaching.

“If you haven’t signed up yet, don’t miss out, go to GOV.UK to do it today.”

HMRC said opening a Tax-Free Childcare account takes around 20 minutes online and parents can withdraw any unused funds at any time, providing flexibility over how they manage their childcare spending.

To qualify for the scheme, families must have children aged 11 or under, with eligibility ending on September 1 following a child’s 11th birthday

| GETTY

Support for disabled children continues until September 1 after they turn 16.

Parents, or a single parent in lone-parent households, must each earn at least the equivalent of 16 hours a week at the National Minimum Wage or National Living Wage on average.

There is also an upper earnings threshold, with each parent required to earn less than £100,000 a year to remain eligible.

Families receiving Universal Credit or using childcare vouchers are generally unable to claim Tax-Free Childcare at the same time.

Parents can check their eligibility and submit an application through GOV.UK, which also provides an online childcare calculator to help families understand what support they may be entitled to receive.

The Tax-Free Childcare scheme can also be used alongside free childcare hours for families who meet the relevant eligibility criteria, potentially allowing parents to reduce their childcare bills further.

The latest figures suggest growing awareness of the scheme among working families as childcare costs remain a significant expense for many households across the UK.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Keep Reading

Blue Diamond boss warns Ed Miliband’s rules will cost garden centre chain ‘millions’

State pension warning as 35 years of National Insurance contributions may not secure full payment

Scam alert: Cancelled bank card ‘loophole’ could cost YOU

Energy crisis continues as Britain braces for £4BILLION hike to household bills

Rachel Reeves to be SACKED as Chancellor in shock demotion plan under Andy Burnham

Rachel Reeves preps ANOTHER savings overhaul after 22% tax raid on stocks and shares accounts

Millions of Britons could receive £77 payout as landmark lawsuit proceeds

State pension row looms as Andy Burnham told to ‘reform’ triple lock payment hikes

Millions of Britons with £10,000+ in bank accounts missing out on interest as inflation erodes savings

Editors Picks

Lord Hermer orders staff to stop using X over ‘racism and misogyny’

24 June 2026

Blue Diamond boss warns Ed Miliband’s rules will cost garden centre chain ‘millions’

24 June 2026

Who could be the UK’s next chancellor? | UK News

24 June 2026

World Cup 2026: Should Ghana have had penalty against England for Ezri Konsa tackle??

24 June 2026

Subscribe to News

Get the latest Brittan News and Updates directly to your inbox.

Latest News

Labour announces Manchester council boss as metro mayor candidate | Manchester News

24 June 2026

Royal Navy attack drone smashes into luxury yacht in Portsmouth Harbour causing thousands of pounds of damage

24 June 2026

Home Office finally admits staggering true cost of ‘Boriswave’ migrant flood

24 June 2026
Facebook X (Twitter) Pinterest TikTok Instagram
© 2026 British Bulletin. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.