Tax Free childcare is a new government scheme introduced to help your family with the cost of childcare and will support you into work or to increase your hours at work, should you wish to. You could get up to £2,000 government support per child per year, (a maximum of £500 per child per quarter) towards your childcare costs.
You can apply for Tax-Free Childcare if:
If you are self employed you are entitled to a start-up period during your first 12 months of self-employment. During this time, you don’t have to earn the minimum £115 a week to be eligible for Tax-Free Childcare. However, you cannot use Tax-Free Childcare at the same time as receiving vouchers, Universal Credit or Tax Credits.
To check your eligibility...
Once you’ve successfully applied for your online account, you;
Your Childcare Account...
You and others can pay into your childcare account as and when you like. How much you pay into your Childcare Account, and when, is up to you. You can make one-off payments or set-up a standing order to make regular payments into your Childcare Account.
Every 3 months, you will receive a reminder to reconfirm your eligibility, simply tick the box to confirm that your details have not changed. If you do not reconfirm your eligibility, you will no longer receive government top ups until you do so.
If your circumstances change or you no longer want to pay into the account, then you’ll be able to withdraw the money you have built up. If you do, the government will withdraw its corresponding contribution.
Parents will be able to apply for both Tax Free Childcare and the extended entitlement through a joint application developed by HMRC.
You can use the Childcare Calculator to see if you are eligible and would benefit from Tax Free Childcare by going to:
If you want to opt into Tax-Free Childcare and are currently receiving other support or benefits, you may need to take action:
For more information about Tax-Free Childcare as a parent, go to www.gov.uk/government/news/tax-freechildcare-
For any other enquiries, please call the Childcare Service Helpline on 0300 123 4097