HM Revenue and Customs (HMRC) estimates that less than 22% of families eligible for Tax-Free Childcare have joined the Tax-Free Childcare scheme.
Tax-Free Childcare is available to pay for approved childcare including childminders, nurseries, nannies and after school clubs. The childcare provider must be signed up for the scheme before you can benefit from Tax-Free Childcare. If you are not already benefiting from the scheme, it is worth asking your childcare provider whether they operate it.
The Tax-Free Childcare scheme provides a contribution of up to £500 every 3 months (up to £2,000 a year) for each of your children up to the age of 11. This increases to £1,000 if your child is disabled and applies up to the age of 17.
This particular benefit is generally available for parents and their partners who are in employment or self employed, earning in excess of the minimum wage and up to £100,000 in the current tax year.
In order to take advantage of the scheme, first of all check that your provider is registered, then you need to set up an online childcare account and for every £8 you pay in, the government will pay £2 in order to pay your childcare provider. Participation in the scheme does not require the completion of a Self Assessment form.
Other childcare support is available for those on a lower income.
For further information about how we can help, please email us or call us on 01745 582 933
Published February 2022 – please do not rely on this document alone and seek advice to take into account your own circumstances
