Covid-19: tax-free childcare schemes

Temporary changes have been made to the eligibility criteria for tax-free childcare and 30 hours free childcare, during coronavirus. HMRC’s guidance ‘Check if you can get Tax-Free Childcare and 30 hours free childcare during coronavirus (COVID-19)’ covers individuals whose working patterns have changed because of coronavirus. The guidance confirms that employees who have been furloughed on the CJRS will remain eligible under both schemes, even where their income falls below the normal minimum income limit because of the scheme. Similarly, self-employed individuals will also remain eligible where their earnings fall below the minimum earnings requirement but where they would normally expect to earn above that amount. The guidance also covers those unable to work because of coronavirus. Critical workers with adjusted net income over £100,000 are normally not eligible but will be included where the increase results from additional hours worked as a direct result of coronavirus.