What is Tax-Free Childcare?
Tax-Free Childcare provides thousands of eligible families with assistance with regulated childcare costs up to £500 every three months (or £1,000 if their child is disabled). These funds aim to cover the cost of holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes.
For every £8 deposited into a Tax-Free Childcare online account, families will receive an additional £2 in government top-up. This government scheme is available for children aged up to 11, or 17 if the child has a disability. This is applied per child, not per household. Therefore, ensure you have created an account for each eligible child.
Are you eligible?
Parents and carers could be eligible for Tax-Free Childcare if they:
- have a child or children aged up to 11. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until they are 17.
- earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average.
- each earn under £100,000 per annum.
- do not receive tax credits, Universal Credit, or childcare vouchers.
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