© Nannytax 2018

We use cookies to ensure that you have the best experience. For more information, please read our cookie policy. By clicking on accept, you are agreeing to our cookie policy.

girl using abacus to calculate

Tax-Free Childcare is a 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 £125 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.
orangejigawpieceiStock 512591780
greenjigawpieceiStock 512591780

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.
bluejigawpieceiStock 512591780
maroonjigawpieceiStock 512591780

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.
pinkjigawpieceiStock 512591780
orangejigawpieceiStock 512591780

Other options

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


Nannytax Payroll Services

Have a look at our all-inclusive Payroll Service to see how we can help you with the admin involved with hiring a nanny.

Read More

Childcare Vouchers

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

Read More

Registering with Ofsted

Find out more about what is required for your nanny to be Ofsted registered so that you can get help with childcare costs. 

Read More