Tax Free Childcare Info for Families

What is Tax-Free Childcare?

Tax-Free Childcare is a new Government scheme to help working families with their childcare costs.

The scheme will allow parents to open online childcare accounts to pay their registered childcare providers directly. For every £8 parents pay in to these accounts, the Government will add £2, and the total amount in the account can only be spent on childcare. Parents can receive up to £2,000 in Government support per child, per year, or £4,000 for disabled children.

How does it work?

Parents will use their online childcare account just like a bank account to pay childcare providers.

You’ll be able to track how much you’ve paid in and how much you’ve spent for each child.

Once providers have signed up, you will be able to find them on HMRC’s online tool which lets parents search for local childcare providers who can be paid using Tax-Free Childcare.

Am I eligible?

You could be eligible for Tax-Free Childcare if you:

  • earn at least £115 per week but less than £100,000 per year;
  • don’t receive childcare vouchers, tax credits or Universal Credit; and
  • have children who are under 12, or under 17 for disabled children

You can sign up for Tax-Free Childcare here.

Please also visit www.childcarechoices.gov.uk for help with childcare cost. 

Last updated: 28 Jan 2019

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