HM Revenue and Customs (HMRC) is encouraging those yet to sign up for Tax-Free Childcare, to do it now and give their summer plans a financial boost.
Latest figures from HMRC show in March 2025, 36,095 families in Scotland used the scheme to save on their annual childcare bills, an increase of 925 families compared to the previous March.
Working families who sign up to Tax-Free Childcare can boost their annual budget by up to £2000 per child up to the age of 11 or up to £4000 up to the age of 16 for a disabled child.
Parents can use the scheme to help towards the cost of approved childcare whether that’s nursery for younger children, or for older children – wraparound or after school care clubs during term time or holiday clubs for the long summer holidays ahead.
Families could be eligible for Tax-Free Childcare if they:
have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4000 a year until 1 September after their 16th birthday
the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average each earn no more than £100,000 per annum
do not receive Universal Credit or childcare vouchers
Visit GOV.UK to check eligibility and register for Tax-Free Childcare.
