Tax-Free Childcare

You could be eligible for a portion of your childcare costs to be paid for by the Government.

The new Tax-Free Childcare Scheme was introduced in April 2017 to replace the Childcare Vouchers Scheme for new joiners from April 2018.

Tax-Free Childcare offers parents a £0.20 top up for every £0.80 paid, up to a maximum of £2,000 per year, per child.  So for example if the childcare costs are £500 for a month, the parents would pay £400, with the Government topping this up by £100 to make the £500 total.

You can usually get Tax-Free Childcare if

  • Your child/children are 11 years old or younger. (This is extended to 16 for children with disabilities)
  • You and your partner both work earning at least the minimum National or Living wage for 16 hours per week. (self employed people do have some exemptions to this rule)
  • Your childcare provider is a registered and authorised source.
  • You are not eligible for Tax-Free Childcare if
  • Either you or your partner has taxable income of £100,000 or over.
  • Your child does not normally live with you.
  • Your child is a foster child.

You cannot claim Tax-Free Childcare at the same time as childcare vouchers, Working Tax Credits, Child Tax Credits or Universal Credit.

For further information as to how to claim the Tax-Free Childcare, please email Nicola Wignall or call us on 01772 821021.