Tax-free childcare error leaves parents facing fines and childminders unpaid

Childcare Choices – the website by HM Revenue & Customs (HMRC) that gives financial support to parents – has experienced delays on payments, with some parents unable to process money while others were told transactions had been made, even when they hadn't.

In fact, the relatively new website has been riddled with technical difficulties since its launch in April 2017.

At one point, the problems were so severe that MPs launched an investigation into the website as part of a wider look at childcare costs in the UK.

The tax-free scheme is aimed at working mum and dads with children under 12 years old or under 17 years old if they're disabled.

HMRC has told us this week's glitch has now been fixed.

But parents, nurseries and childminders complain they've been "left in the dark… [and] massively in the red".

And according to Twitter user Alice Ainsworth, the service has failed to pay the childcare provider for her several times.

A HMRC spokesperson told The Sun: "We have identified an issue which has resulted in delays to some Tax-Free Childcare payments.

"We apologise for the inconvenience that this has caused to parents and providers. The affected payments have been processed."

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"Childcare providers should receive payments on November 7 and we have contacted those affected by email," the spokesperson added.

HMRC did not clarify whether parents or childminders will be eligible for any compensation.

Earlier last month, the deadline closed for parents to apply for childcare vouchers, meaning they may now miss out on hundreds of pounds.

Meanwhile, working parents are struggling as nursery fees rise three times faster than wages.

A million parents could also be missing out on a tax break of up £2,000 – are you one of them?

TAX-FREE CHILDCARE: DO YOU QUALIFY

  • You and your partner must both in work in the UK – the self-employed can also qualify
  • You must earn less than £100,000 a year
  • If you're over the age of 21, you must earn on average at least £120 a week, unless you're in your first year of employment
  • You can't get help from other childcare options, like salary sacrifice or childcare vouchers

You'll need to sign up for the savings account on the Childcare Choices website.

HMRC will then review your application  – the Treasury has said most parents can expect a response to their application within five working days – and if successful you'll then be asked to open a savings account through NS&I.

You can add money when you like, with the cash used to pay your childcare provider – but they must be regsitered with the Childcare Choices website too.


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