With the new school term starting, HM Revenue and Customs (HMRC) is reminding families to open a Tax-Free Childcare account today to save up to £2,000 per child on their yearly childcare bills.

Families can use their Tax-Free Childcare account to pay for any approved childcare including holiday clubs, breakfast and after-school clubs, childminders and nurseries.

The scheme provides working families, with children up to the age of 11, or 16 if their child has a disability, up to £2,000 a year per child or £4,000 a year if their child is disabled. For every £8 paid into a Tax-Free Childcare account, families automatically receive the government top up of £2. Families can save up to £500 every 3 months for each child or £1,000 if their child is disabled.

Myrtle Lloyd, HMRC's director general for customer services, said: "Starting back to school and arranging childcare for the term ahead can be costly for working families. Tax-free childcare offers financial help so families can save on the cost of childcare. Search Tax-Free Childcare on GOV.UK and sign up online today."

Opening a Tax-Free Childcare account online is straightforward and quick. Money can be deposited 365 days a year, to be used straight away or left in the account and used whenever needed. Unused money can be withdrawn at any time.

Earlier this year, the government announced new plans to expand the offer of 30 hours of free childcare a week, so that working parents of children over the age of 9 months when they start school, can access support.

More information on the scheme and how to apply can be found online.

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