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Tax-Free Childcare and summer activities

Newsletter issue - August 2021.

HMRC has issued a reminder to working parents that Tax-Free Childcare (TFC), the scheme the government phased in between 2017 and 2018, is not just for "traditional" childcare costs, such as regular hours after school during term time. It's also possible to use the account to pay for things like accredited clubs or sports activities over the summer.

TFC is available for children aged up to 11 generally and takes the form of a top-up scheme - parents pay into the account and HMRC tops it up with an additional £2 for every £8 deposited, subject to a three-monthly cap of £500.

If a family is not yet registered for the scheme, the eligibility and details can be found here.