Tax-Free Childcare

Working parents, including the self-employed, have access to a government scheme called Tax-Free Childcare.

If you have children aged 0-11, you could get up to £2,000 per child, per year towards qualifying childcare. If your child is disabled this increases to £4,000 per child, per year, and is available between 0-16 years of age.

To do so, you will open an online account to pay for registered childcare. For every £8 that you put into this account, the government will add an extra £2.

You can use Tax-Free Childcare to help pay for:

  • Registered childminders, nurseries and nannies
  • Registered after-school clubs and playschemes
  • Registered schools
  • Home careworkers working for a registered home care agency

Am I eligible?

To be eligible for Tax-Free Childcare you and any partner must earn at least £131 per week (i.e. work the equivalent of 16 hours at the National Minimum Wage).

There are exceptions to this rule if you or your partner are unable to work due to:

  • Maternity, paternity and adoption leave
  • Disability
  • Caring responsibilities

However, in the case that you or your partner earn more than £100,000 a year individually, you are automatically ineligible.

Can I use Tax-Free Childcare in conjunction with other benefits?

You can use Tax-Free Childcare alongside:

  • 15 hours of free childcare for 2 year olds
  • 30 hours of free childcare for 3-4 year olds

You can’t use Tax-Free Childcare alongside:

  • Universal Credit
  • Tax Credits
  • Childcare Vouchers

Further details are available at:


For help with any of your accounting or business advisory needs please contact Stack & Jones Accountants on 01869 277973 for a free 1-hour consultation.


Sources:, childcarechoices

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