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If you use childcare, paying your approved provider via the Tax Free Childcare scheme can save you money. For every £8 you deposit into the account, the Government will add £2. These funds are then used to pay your childcare provider directly from the account.
To access the Tax Free Childcare scheme, each adult in the household must earn less than £100K a year.
You cannot get Tax-Free Childcare at the same time as claiming Working Tax Credit, Child Tax Credit, Universal Credit or childcare vouchers. Which scheme you’re better off with depends on your situation.
To find out of you are entitled to help with your childcare costs via Universal Credit, use the Fife Benefit Checker Benefit calculator or if you have no entitlement to benefits, use the childcare calculator to work out which type of support is best for you.
The Tax free Childcare accounts can be used alongside the 1,140 hours of funded early learning and childcare from the Scottish Government if your child is eligible.
Full details of Funded Early learning and childcare along with the Tax Free Childcare scheme with links to open an account can be found here: Help paying for childcare - mygov.scot
Following the Spring budget announcement on Wednesday 15th March 2022, the DWP has confirmed The Universal Credit childcare cost cap will rise in the summer meaning the Government will pay more of parents' childcare costs. For those with one child it rises from £646.35 to £951 and for two children the cap is up from £1,108.04 to £1,630, then increasing in line with CPI each year until 2027-28.
Parents will now also be further supported with upfront childcare costs. This removes any gap in funds which would currently be claimed in arrears and eases parents into the childcare costs payment cycle.
Details on how to claim upfront costs will be confirmed in due course, but in the meantime talk to your work coach after you’ve made your claim.
If you have any questions or need help to apply, the following agencies can help:
Before you call, this helpline may ask you some security questions. Make sure your personal details and address are up to date in your personal tax account or you could fail telephone security. If you do not already have a personal tax account, you can set one up.