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Tax Free Childcare

Tax-Free Childcare

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.

You can get Tax-Free Childcare at the same time as 30 hours free childcare if you’re eligible for both.

You can use it to pay for approved childcare, for example:

  • childminders, nurseries and nannies

  • after school clubs and play schemes

 

Your eligibility depends on:

  • if you are working

  • your income (and your partner’s income if you have one)

  • your child’s age and circumstances

  • your immigration status

 

You can usually get Tax-Free Childcare if you (and your partner, if you have one) are:

  • in work

  • on sick leave or annual leave

  • 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.

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.

For further information and to see if you are eligible please click the link below.

Apply online for Tax-Free Childcare

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