Tax free childcare

Tax free childcare is a new government scheme to help working parents with the cost of childcare that they pay for. (Please note that it is completely separate to the scheme to increase the amount of funded childcare to 30 hours).

How does it work?

Under this scheme parents will open a special online account to use to pay for registered childcare and the government will top up the amount in their account by 20%. This will be launched from early 2017.

As a childcare provider you will need to register if you are willing to accept payments directly from parents’ online accounts. Letters were sent to regulated and approved childcare providers across the UK throughout September and October 2016, asking you to sign up online for Tax-Free Childcare.

Further information

Visit GOV.UK: tax free childcare - top things childcare providers should know for further information.

You may also wish to refer parents to GOV.UK: tax free childcare - 10 things parents should know where they can find out more about the scheme.