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Tax-Free Childcare is a new government scheme (launched in 2017) to help working parents/carers with the cost of childcare.

Either parent must earn under £100k/annum

To be eligible, you must:

  • Have a child living with you.
  • Have a child under 12, or under 17 if disabled.
  • Be in paid work (both parents/carers or the single parent). Working includes both employed or self-employed with an expected income of at least £115 a week on average.
  • Earn less than £100K (either parent/carer).
  • Not be receiving other government support towards the cost of childcare (i.e. Childcare Vouchers, Tax Credits, Universal Credit, Student Bursary, etc)
  • Check your eligiblity on the Childcare Choices website.
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Parents with children under 12 can apply now

  • Tax-Free Childcare (TFC) is now open to all eligible families with children aged under 12 and all eligible parents with disabled children under 17 can apply. Click here to sign-up.

Tax-Free Childcare can save up to £2K per child

  • You will be able to open an online childcare account for each of your children.
  • For every £8 you pay into your childcare account, the government will automatically pay in an extra £2.
  • You can get up to £500 per child every three months (£2K per year) towards your childcare costs.
  • You can use this money to pay your nanny.
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It is managed via an online platform

  • Parents/carers manage Tax Free Childcare via an online childcare account.
  • The online childcare account will allow parents/carers to open an account, find their childcare provider via a search facility, and set-up payments to their childcare provider and can parents can pay HMRC directly.
  • Click here to sign in or sign up.

Tax-Free Childcare for Nannies

  • Your nanny must be registered with a regulator (i.e. Ofsted) in order for you use Tax-Free Childcare.
  • As a nanny employer, you will be able to send payments directly from your online childcare account into your nanny's bank account, provided that your nanny is signed up to the system.
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Other options

If Tax-Free childcare is not suitable for you, please have a look at the other options available:

 

Childcare Vouchers

If Tax-Free Childcare is not for you, check out Childcare Vouchers to see if they may help you.

Read More

Universal Credits

 Universal Credits work can help if you're on a low income, have a look to if they may help you.

Read More

Registering with Ofsted 

To claim financial support for your Childcare cost in England, your nanny must be Ofsted registered. 

Read More