Childcare Service compensation

Released 11 August 2017

HMRC have announced that tax-free childcare claimants who have been unable to access tax-free childcare through their childcare account for technical reasons may be able to claim compensation.

Tax-free childcare is the new scheme under which claimants can get up to £500 every 3 months (£2,000 a year) for each child to help with the costs of childcare. Under the scheme, the Government will pay £2 for every £8 paid to a childcare provider via an online account.

However, technical issues have resulted in claimants being unable to complete their application for tax-free childcare, being unable to access their account or not receiving a decision about whether they are eligible, without explanation, for more than 20 days. Anyone who has been affected by these issues may be able to get the Government top-up as a one-off payment. HMRC will also consider refunding any reasonable costs directly caused by the service not working as it should, mistakes or unreasonable delays.

For further information and details on how to make a claim, see Childcare Service compensation.

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