Tax-Free childcare is a government scheme aimed at helping parents back to work. For every £8 a parent pays into a Tax-Free Childcare account the government will pay £2.
Tax-Free Childcare is available from birth until age 11 years (16 years if your child is disabled).
Working families can get up to £500 every 3 months (up to £2,000 a year) for each child to help with the cost of childcare. This goes up to £1,000 every 3 month (up to £4,000 a year) for a child who is disabled and in receipt of: Disability Living Allowance, Personal Independence Payment, Armed Forces Independence Payment OR if your child is certified as blind or severely sight impaired.
Tax-Free Childcare can be used to pay for registered childcare including:
• Childminders
• Nurseries
• Pre-schools
• Nannies
• Before and after school clubs
• Holiday clubs
Tax-Free Childcare can be used alongside the 15 and 30 hours funded childcare available for 3- and 4-year-olds.
Tax-Free childcare cannot be used with Universal Credits, Working Tax Credits or Child Tax Credits.
You and your partner must each expect to earn (on average) at least £167 per week (equal to 16 hours at the national minimum wage), up to £100,000 each.