It’s the end of the summer holidays! With prices going up, are you getting all the benefits you can claim in relation to your children?
The Government’s Tax-Free Childcare provides up to £500 every three months for childcare, which amounts to as much as £2,000 a year. If your child is disabled, this rises to up to £1,000 every three months, giving up to £4,000 a year. To get the benefit, you would need to set up a childcare account, and for every £8 you put into this account, the Government will add £2 up to the limits outlined above. You can get the benefit if you are working, on sick or annual leave or on maternity or paternity leave, on adoption leave or on shared parental leave. You would also need to be earning at least the National Minimum Wage for at least the next three months, which is equivalent to £1,967 for those over 23.
How long does this childcare benefit last?
This benefit is available to any child up until they reach age 11, and they will stop being eligible on September 1 after their 11th birthday. For disabled children, this rises to 17 but your child must get Disability Living Allowance, the Personal Independence Payment, Armed Forces Independent Payment, the Child Disability Payment in Scotland or the Adult Disability Payment in Scotland, according to Gov.UK. They would also qualify if they are certified as blind or severely sight-impaired.
Child Benefits can be claimed for children up to the age of 16 – or up to 20 if they remain in approved education or training, which would include A Levels, T Levels, Scottish Highers, NVQs and certain traineeships. But if either you or your partner earns more than £50,000 a year, you may be taxed on the benefit. So, check whether you are better off claiming it or not if you are reaching these thresholds.
If you are unsure how this works, then Lotuswise Accountants will be able to help you, just give us a ring on 020 3367 1106!