To mark ‘Playday’ 2025 (6 August), HM Revenue and Customs (HMRC) is encouraging working families to save money by signing up to Tax-Free Childcare and using one of the thousands of facilities accepting it as payment.
Tax-Free Childcare means working families can save up to £2,000 annually for each child up to the age of 11, and £4,000 for a disabled child up to the age of 16, when they’re paying for their childcare.
There are now 75,000 childcare settings accepting Tax-Free Childcare as payment including nurseries, registered childminders, holiday activity clubs and, for when school starts back in September, before and after school clubs.
‘Playday’ is an annual celebration of children’s right to play, highlighting the importance of play in their health, wellbeing and development.
Families yet to sign up for Tax-Free Childcare can do it now to pay for their summer activities or start paying into it ready for breakfast and after-school clubs when the new term starts.
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused payments can be withdrawn at any time.
For every £8 deposited in a Tax-Free Childcare account, the government tops it up by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards their childcare costs.
Parents are encouraged to visit GOV.UK to check eligibility and register for Tax-Free Childcare.