Brits have been urged to check if they qualify for up to £2,000 worth of support every year.

HM Revenue and Customs (HMRC) has encouraged parents to see whether they might qualify for financial help with childcare expenses. In a message posted on X, HMRC said: “No need to hunt for egg-cellent childcare savings this Easter. Working parents could get up to £2,000 a year per child with Tax-Free Childcare. From term-time care to holiday clubs, thousands of providers accept it.”

However, this funding is no longer available if you or your partner earns £100,000 a year or more. Those who meet the criteria can receive up to £500 every three months for each child to assist with childcare expenses. This amounts to up to £2,000 per year.

The Government website clarifies that this increases to £1,000 quarterly if a child has disabilities (up to £4,000 annually). To access these funds, known as tax-free childcare, families must establish an online childcare account for their child.

For every £8 deposited into this account, the government contributes £2 to pay your childcare provider. Tax-free childcare can be claimed alongside 30 hours of free childcare through Free Childcare for Working Parents if you meet the requirements for both schemes.

What tax-free childcare can cover

It can be used to pay for approved childcare, including:

• Childminders, nurseries and nannies
• After school clubs and play schemes

If your child is disabled, the additional tax-free childcare funds you receive can be used to cover extra hours of childcare. These funds can also be utilised to pay your childcare provider for specialist equipment needed by your child, such as mobility aids.

Who qualifies?

Typically, you’re eligible for tax-free childcare if you (and your partner, if applicable) are:

• Employed
• On sick leave or annual leave
• On shared parental, maternity, paternity or adoption leave

Even if you’re not currently employed, you may still qualify if your partner is working and you receive any of the following:

• Incapacity Benefit
• Severe Disablement Allowance
• Carer’s Allowance or (only in Scotland) Carer Support Payment
• Contribution-based Employment and Support Allowance

Over the forthcoming three months, both you and your partner (if you have one) must each anticipate earning at least:

• £2,643.68 before tax if you’re aged 21 or over (the same as £203.36 per week)
• £2,256.80 before tax if you’re aged 18 to 20 (the same as £173.60 per week)
• £1,664 before tax if you’re under 18 or an apprentice (the same as £128 per week)

If you’re self-employed and started your business less than a year ago, you can earn less and still qualify for tax-free childcare. If you hold more than one job, you can use your total earnings to determine if you meet the threshold.

• Earnings from any employment
• Earnings from any self-employment

However, it’s crucial to understand that if you or your partner have an expected “adjusted net income” exceeding £100,000 in the current tax year, you will not qualify. For further details, visit the Government website here.