Tax Free Childcare
Tax Free Childcare is the latest scheme introduced by the government and covers working parents and now those who are self-employed.
For every £8 you pay in, the government will add an extra £2, up to £2,000 per child.
- you must be working (your partner must be working too)
- you must NOT be in receipt support vie Tax Credit or Universal credit* if you work but your partner is unable to work because they are disabled or care for a disabled person, you are still eligible
- Tax Free Childcare Scheme is not available to parents where either a single parent or either member of a couple earns over £100,000 per annum
- Currently the scheme is limited to parents of children aged under 4 years and parents of disabled children under 16 years, however the scheme will expand during 2017 to cover children under the age of 12 years
How does the Tax Free Childcare Scheme operate?
- Each parent has to be in work and each earning £120 per week and not more than £100,000 each
- A tax free childcare account is required; this is an account that you set up from the government site. Click https://www.childcarechoices.gov.uk/. An account is set up for each child to enable you to pay in money to cover the cost of childcare with a registered provider. You have the flexibility to pay in more or less as you choose. If you no longer wish to fund the account you can withdraw the money you may have built up; the government will withdraw its contribution.
- For every 80p you pay towards eligible childcare, the government top up 20p to a total of £10,000, the equivalent of up to £2000 support per child or £4000 for disabled children.
- Nannies who are registered on the Ofsted Voluntary Register can sign up to receive payments. The Childcare Service Help Line is a useful source of guidance 0300 123 4097
Back to Ofsted Registration.