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Tax-Free Childcare – Don’t Miss Out

You could get up to £2,000 per year for each of your children to help with the cost of childcare

Many families will be looking ahead to the school holidays, or even to the start of term, and thinking about arranging childcare.

What you may not know is that the governments tax-free childcare scheme could provide up to £2,000 a year per child, or £4,000 if your child is disabled, towards the cost of childcare and holiday clubs.

If you qualify for the scheme (more on that below), you’ll be required to set up an online childcare account for your child. For every £8 you pay into the account, the government will pay in £2 up to a maximum of £500 (or £1,000 if your child is disabled) every three months.

You can then use the account to pay for your childcare, providing your childcare provider is registered to accept payments from the scheme.

How do I qualify for tax-free child care

To qualify for the scheme, your child must be 11 years or under. The parent and their partner (if they have one);

• must earn, or expect to earn, at least the national minimum wage or living wage for 16 hours a month on average
• must earn no more than £100,000 per annum
• must not receive universal credit or childcare vouchers

What can I use tax-free childcare for?

Parents can use the scheme to pay for approved childcare such as child-minders, nurseries and nannies or after school clubs and play schemes.

How can I apply for tax-free childcare

You can apply online for a childcare account on the government website.

The application process should take no longer than 20 minutes and you will need;

• your National Insurance number
• your Unique Taxpayer Reference (UTR), if you’re self-employed
• the UK birth certificate reference number (if you have one) of any children you’re applying for
• the date you started or are due to start work