Information provided by Leuchars HIVE
Recent (2021)
FAMCAS results show that 59% of Service families that use childcare do not make
use of existing Government childcare initiatives that may help to save families
money when accessing childcare.
HM Revenue
& Customs (HMRC) have produced a document for Defence which explains one of
these initiatives, Tax-Free Childcare (TFC). TFC accounts can be set up for
your child and for every £8 that you place in the account HMRC will add an
additional £2; this money has to be used on childcare. TFC accounts are
necessary for participation in particular schemes and is encouraged for the
Wraparound Childcare pilots.
The
information pack contains all the useful information about TFC in one place,
including links to their calculators to enable parents to work out whether they
will be better off using a TFC account, and a handy myth buster section to
answer some of the more frequently asked questions.
Do note
though that it is not possible to have a TFC account and be part of a salary
sacrifice scheme, so families currently using salary sacrifice schemes will
need to carefully consider the benefits of both schemes before deciding which
will be best for them. Once a salary sacrifice account has been closed it
cannot be reopened and it is not possible to open a new salary sacrifice
accounts.
