Tax Free Childcare
Tax-Free Childcare
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You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the costs of childcare. This goes up to £1,000 every 3 months if a child is disabled (up to £4,000 a year).
If you get Tax-Free Childcare, you’ll set up an online childcare account for your child. For every £8 you pay into this account, the government will pay in £2 to use to pay your provider.
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You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.
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You can use it to pay for approved childcare, for example:
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childminders, nurseries and nannies
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after school clubs and play schemes
Your eligibility depends on:
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if you are working
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your income (and your partner’s income if you have one)
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your child’s age and circumstances
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your immigration status
You can usually get Tax-Free Childcare if you (and your partner, if you have one) are:
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in work
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on sick leave or annual leave
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on shared parental, maternity, paternity or adoption leave
You may still be eligible if your partner is working, and you get Incapacity Benefit, Severe Disablement Allowance, Carer’s Allowance or contribution-based Employment and Support Allowance.
You can apply if you’re starting or re-starting work within the next 31 days.
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You’ll need to expect to earn a certain amount over the next 3 months. This is at least the National Minimum Wage or Living Wage for 16 hours a week on average.
For example, over the next 3 months you expect to earn at least £1,976 - the National Living Wage for people over 23.
If you have a partner, they’ll need to expect to earn at least this much too.
If you’re self-employed and do not expect to make enough profit in the next 3 months, you can use an average of how much you expect to make over the current tax year.
This earnings limit does not apply if you’re self-employed and started your business less than 12 months ago.
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For further information and to see if you are eligible please click the link below.