Tax-Free Childcare

Tax-Free Childcare

• For working families, including the self-employed, in the UK
• Earning under £100k and an average of £167 per week (equal to 16 hours at the National Minimum or Living Wage) each over three months
• Who aren't receiving Tax Credits, Universal Credit or childcare vouchers
• With children aged 0-11 (or 0-16 if disabled)
• For every £8 you pay into an online account, the government will add an extra £2, up to £2,000 per child per year

Is it for me?

You can receive up to £2,000 per child per year - that's up to £500 every three months. If you have a disabled child, you can receive up to £4,000 per child - that's up to £1,000 every three months.

Am I eligible?

You, and any partner, must be over 16 and each expect to earn an average of £167 per week (equal to 16 hours at the National Minimum or Living Wage) over three months.

If you, or your partner, are on maternity, paternity or adoption leave, or you're unable to work because you are disabled or have caring responsibilities, you could still be eligible. 

You can't get Tax-Free Childcare if either you, or your partner, each individually expect to earn £100,000 or more.

How can I use it?

You can use Tax-Free Childcare all year round to spend on regulated childcare, such as:

• Childminders, nurseries and nannies
• Before and after-school clubs and holiday clubs

For example, if your childcare costs are £750 per month, you would pay £600 into your childcare account and the government would pay in £150. This would be an annual saving of £1,800 per child.

Please view the step by step guide on how to use Tax-Free Childcare