HMRC issues 'don't miss out' alert over £2,000 a year payments available to thousands

People have been told they could be due thousands of pounds every year that they are failing to claim. The HM Revenue & Customs has taken to social media to tell people they could be "missing out" on up to £2,000 a year - or even more if they have a child with a disability.

In a post on X it said: " Could you be missing out on childcare savings? Here's what you need to know! Sign up for Tax-Free Childcare and save up to £2,000 a year per child on approved childcare costs."

The post goes on: "You may be eligible to get up to £500 every three months (£2,000 per year) per child. If your child is disabled, this increases to £1,000 every three months (£4,000 per year) per child."

It advises parents the money can be used to pay for approved childcare costs, for example:

• childminders
• nurseries
• afterschool clubs
• nannies

To qualify for the money, families must open a Tax-Free Childcare account, which the HMRC says takes just 20 minutes. Those who are eligible can deposit money - and for every £8 they pay in the government will pay in £2, which can be used to pay the childcare provider.

Who is eligible

Your eligibility depends on:

• whether you're working (employed, self-employed, or a director)
• your income (and your partner's income, if you have one)
• your child's age and circumstances
• your immigration status

If you're working

You can usually get Tax-Free Childcare if you (and your partner, if you have one) are:

• in work
• on sick leave or annual leave

If you're on maternity, paternity, shared parental or adoption leave

You can usually get Tax-Free Childcare, but you should apply from a certain date. That date will depend on when you return to work

If you're not currently working

You may still be eligible if your partner is working and you get any of the following:

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

You can apply if you're starting or re-starting work, but you should apply from a certain date. That date will depend on when you start or re-start work.

Your income

Over the next 3 months you and your partner (if you have one) must each expect to earn at least:

• £2,539.68 before tax if you're aged 21 or over (equivalent to £195.36 per week)
• £2,080 before tax if you're aged 18 to 20 (equivalent to £160 per week)
• £1,570.40 before tax if you're under 18 or an apprentice (equivalent to £120.80 per week)

Your child

Your child must be 11 or under and usually live with you. They stop being eligible on September 1 after their 11th birthday.

Adopted children are eligible. Foster children are not.

If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They're eligible for this if they:

• get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only)
• are certified as blind or severely sight-impaired

Your immigration status

To be eligible for Tax-Free Childcare, you must have a National Insurance number and at least one of the following:

• British or Irish citizenship
• settled or pre-settled status, or you have applied and you're waiting for a decision
• permission to access public funds - your UK residence card will tell you if you cannot do this

If you have a partner, they must have a National Insurance number too.

If you're living in an EU country, Switzerland, Norway, Iceland or Liechtenstein, you (or your partner if you have one) might still be eligible for Tax-Free Childcare if:

• your work is in the UK
• the work started before 1 January 2021
• you've worked in the UK at least once every 12 months since you started working here

This is known as being a 'frontier worker'. You must show your Frontier Worker permit to the Childcare Service when you apply for Tax-Free Childcare.

If you get Universal Credit, a childcare bursary or grant, or childcare vouchers

You cannot get Tax-Free Childcare at the same time as claiming Universal Credit or childcare vouchers.

Which scheme you're better off with depends on your situation. Use the childcare calculator to work out which type of support is best for you.