Tax free Childcare

Tax-Free Childcare is a new government scheme (launched in 2017) to help working parents/carers with the cost of childcare.
 

 

Either parent must earn under £100k/annum

To be eligible, you must:

  • Have a child living with you.
  • Have a child under 12, or under 17 if disabled.
  • Be in paid work (both parents/carers or the single parent). Working includes both employed or self-employed with an expected income of at least £115 a week on average.
  • Earn less than £100K (either parent/carer).
  • Not be receiving other government support towards the cost of childcare (i.e. Childcare Vouchers, Tax Credits, Universal Credit, Student Bursary, etc)

Parents with children under 4 can apply now

  • Tax-Free Childcare (TFC) is now open to families with children aged under six or who turned six on or before 24 November and all disabled children. Click here to sign-up.
  • If your child(ren) are older you can sign up to receive an email when Tax-Free Childcare becomes available to you. Click here to sign-up.

Tax-Free Childcare can save up to £2K per child

  • You will be able to open an online childcare account for each of your children.
  • For every £8 you pay into your childcare account, the government will automatically pay in an extra £2.
  • You can get up to £500 per child every three months (£2K per year) towards your childcare costs.
  • You can use this money to pay your nanny.

It is managed via an online platform

  • Parents/carers manage Tax Free Childcare via an online childcare account.
  • The online childcare account will allow parents/carers to open an account, find their childcare provider via a search and set-up payments to their childcare provider.
  • Click here to sign in or sign up

Tax-Free Childcare for Nannies

  • Your nanny must be registered with a regulator (i.e. Ofsted) in order for you use Tax-Free Childcare.
  • As a nanny employer, you will be able to send payments directly from your online childcare account into your nanny’s bank account, provided that your nanny is signed up to the system.