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HMRC Promotes Tax-Free Childcare and Expanded Child Benefit Eligibility

Parents earning under £80,000 urged to claim increased childcare subsidies and reapply for Child Benefit under updated thresholds.

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Overview

  • The UK government is actively encouraging parents to claim up to £2,000 per child annually (£4,000 for disabled children) through the Tax-Free Childcare scheme.
  • Eligibility for Tax-Free Childcare requires working status, meeting minimum earnings thresholds, and a joint adjusted net income below £100,000.
  • Child Benefit thresholds have risen, allowing full payments for households earning up to £60,000, tapering off completely at £80,000.
  • Parents who previously opted out of Child Benefit due to income limits are now being urged to reapply, with applications available online and backdated payments possible.
  • Child Benefit rates recently increased by 1.7%, with payments now at £26.05 per week for the first child and £17.25 for additional children.