The government’s new Tax-Free Childcare initiative is being rolled out from 28 April, and is expected to be fully implemented by the end of the year.
Tax-Free Childcare is a new government scheme to help working parents with the cost of childcare.
Parents of the youngest children can now open an online account, which they can use to pay for childcare from a registered provider.
For every £8 a parent pays in, the government will pay in an extra £2. Parents can receive up to £2,000 per child, per year, towards their childcare costs, or £4,000 for disabled children.
The scheme will be available for children under the age of 12, or under 17 for children with disabilities.
To qualify, parents will have to be in work, and each expecting to earn at least £120 a week. Each parent must not have income over £100,000 per year.
Tax-Free Childcare scheme launch to parents
Tax-Free Childcare will be introduced on 21 April 2017 and will then be gradually rolled out over 2017, with parents of children aged under four (on 31 August), and parents of disabled children (aged under 17) able to enter the scheme first.
Parents will be able to apply for all their children at the same time, when their youngest child becomes eligible. All eligible parents will be able to join the scheme by the end of 2017.
Use the information below to get ready to sign up to Tax-Free Childcare.
You’ll need to sign up to receive payments from parents
Throughout September and October 2016, letters were sent to regulated and approved childcare providers across the UK, asking you to sign up online for Tax-Free Childcare. Further letters are being sent out to all registered childcare providers who have yet to sign up, ahead of Tax-Free Childcare being introduced to parents.
You must be a regulated or approved childcare provider to receive Tax-Free Childcare, only childcare providers registered with a regulator can receive Tax-Free Childcare payments.
Parents will be able to see if you’ve signed up for Tax-Free Childcare
Once you’ve signed up, you’ll appear on our new digital tool which lets parents search for childcare providers who can be paid using Tax-Free Childcare.