Here are the things you need to know about Tax-Free Childcare
Tax-Free Childcare offers £2,000 per year per child, or up to £4,000 for a disabled child, towards childcare costs.
Tax-Free Childcare is available to all eligible workers, including the self-employed.
Both partners must be working to claim. You’ll need to earn £120 minimum per week each and no more than £100,000 per year to be eligible.
Your child must be 11 years or younger to be able to claim Tax-Free Childcare. This rises to 17 years for children with disabilities.
Families who claim Universal Credit aren’t eligible to claim Tax-Free Childcare.
Any eligible families can use Tax-Free Childcare. This isn’t dependent on your employer.
If you claim Tax-Free Childcare you are still entitled to the 30 hours free childcare.
For every 80p you put into your Tax-Free Childcare, the government will add 20p.
You can use Tax-Free Childcare for a variety of child care including: breakfast clubs, after school clubs, nurseries, nannies, au-pairs and school holiday clubs (not all holiday camps accept them but we do!).
Childcare providers will have had to sign up to the scheme for you to be able to pay them with Tax-Free Childcare.
Once you’ve set up an account, you can pay into this with your debit card, by setting up a standing order or making a payment from your bank account.
The account must be set up by one person, but both adults can use this.
Other people such as grandparents, other family members and employers can pay into your Tax-Free Childcare account.
You can withdraw money out of your Tax-Free Childcare account. If you do this, the government will also withdraw the corresponding contribution.
You’ll need to reconfirm your eligibility every 3 months. You'll receive a reminder from the government to do this.
More resources on Tax-Free Childcare
Find out if your childcare provider is signed up to Tax-Free Childcare here.