HMRC warns UK households must claim £2,000 handout ‘by Saturday’ | Personal Finance | Finance

Millions of families are being warned to claim a handout worth up to £2,380 from HMRC before the deadline on Saturday.

Parents who have children are able to apply for free childcare, known as Tax Free Childcare, but need to get the code to access the money by this coming Saturday, August 31, or you will miss out on the handout for the entirety of the coming school term.

If your child’s next term starts in September – whether it’s a school term or nursery – you must make your application for childcare costs support by Saturday.

It can take up to seven days for eligibility to be confirmed by HMRC so you need to act fast or risk missing out.

Any parent with children who reach nine months old between April 1 and August 31 this year, or who turned three within the same dates, are affected.

Anyone who returned to work or started a new job before September 30 2024 must also apply by August 31 to get the money.

The way it works is, the government opens a childcare costs account which is then shared with your chosen nursery, and the nursery reduces the amount it charges you to account for the money it receives from government.

If your child is aged between nine months and two years old, you get 15 free hours, and from age three you get 30 free hours.

For every £8 you put in, the government will add £2, so if you spend £10,000 on nursery fees, your actual bill will be reduced to £8,000 thanks to the 20 percent free from government.