New Support for Parents
HMRC have announced that working parents who receive support through a Government COVID-19 related support scheme (such as the Coronavirus Job Retention Scheme or Self-Employment Income Support Scheme) will still be eligible for childcare support through Tax-Free Childcare (TFC) and 30 hours free Childcare, even if they or their partner’s income falls below the normal minimum requirement.
This support will align with the duration of the schemes (currently 31 March 2021). Additionally critical workers that have worked extra hours because of the pandemic will still be eligible for childcare support if they or their partner’s income goes over the £100,000 upper threshold in the current tax year (March 2020-2021).
Working Parents already using TFC across the UK and/or 30 hours free childcare in England are encouraged to re-confirm their eligibility as normal.
New Parents May Now Be Eligible for SEISS
A reminder that, if a constituent’s responsibilities as a new parent meant they did not submit a tax return for 2018/2019, or their trading profits in 2018/19 were less than their other income (and they were therefore ineligible for SEISS), they may now be able to claim.
- caring for a child within 12 months of birth, or adoption placement
- pregnancy or childbirth, within 26 weeks of the date of giving birth
- a stillbirth after more than 24 weeks of pregnancy
For new parents, their 2017-18 or both 2016-17 and 2017-18 self-assessment returns can now be used to asses eligibility and grant calculation. If these changes mean someone could now be eligible, they need to confirm to HMRC that being a new parent affected their trading profits or total income in the tax year 2018 to 2019. These changes mean new parents may now be able to claim for the first SEISS grant, the second SEISS grant, or both (depending on when their businesses may have been adversely affected by the coronavirus pandemic) when applications open for the second grant.
More information is available on GOV.UK.