Tax-Free Childcare

Tax-Free Childcare supports working families, including the self-employed, with childcare costs. If a working parent is earning at least the National Minimum Wage for 16 hours a week on average and under £100,000 per year, they could save up to £2,000 a year per child or £4,000 if their child is disabled.

All families have to do is pay into their Tax-Free Childcare account and for every £8 you pay into this account, the UK Government will pay in £2 to use to pay your provider.

You can get Tax-Free Childcare at the same time as 30 hours of free childcare if you’re eligible for both.

You can use it to pay for approved childcare, for example:

• childminders, nurseries and nannies
• after school clubs and play schemes

Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.

Check with your provider to see if they’re signed up.

You can use the extra Tax-Free Childcare money you get to help pay for extra hours of childcare. You can also use it to help pay your childcare provider so they can get specialist equipment for your child such as mobility aids.

Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.

Adopted children are eligible, but foster children are not.

If your child is disabled and usually lives with you, you may get up to £4,000 a year until 1 September after their 16th birthday. They’re eligible for this if they:

• get Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment, Child Disability Payment (Scotland only) or Adult Disability Payment (Scotland only)
• are certified as blind or severely sight-impaired

Please visit the Childcare service | Government Gateway: sign in or set up (tax.service.gov.uk)

The process should take no longer than 20 minutes.