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Coronavirus and tax-free child care

On 7 May 2020, some changes were made to the rules for tax-free child care in relation to coronavirus. These changes are temporary until it is announced that they have been ended.

For a worker on furlough, entitlement continues if either:

  • the worker or partner earns the national minimum wage (NMW) for at least 16 hour a week, or
  • they would so earn if their normal income meets the child care's income requirement.

If someone is not working, or is working less, entitlement continues:

  • while receiving statutory sick pay
  • while taking unpaid leave to care for others
  • for someone who must stay at home because a member of the household has symtoms, or
  • for someone whose income has fallen but would otherwise have sufficient income to qualify

Someone who is made redundant no longer qualifies. If the person resumes employment, he or she may claim up to 31 days before starting the new job.

A self-employed person is entitled if the income is sufficient to meet the requirement or would be if it were not depressed. For this purpose, a payment under the self-employment income support scheme (SEISS) counts as income.

Further details can be downloaded from here. [20.05]

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