Tax-free child care scheme eligibility | Moorepay

Payroll Legislation

Tax-free child care scheme eligibility

Legislation

Tax-free child care scheme eligibility

Date

Ongoing

Summary

Parents of children under four on 31 August 2017 can apply for tax-free childcare. Here’s what you need to know:

  • The scheme was rolled out to all eligible parents from 2017 onwards.
  • Families with both parents working and earning less than £100,000 per year become eligible to receive 20% off their childcare costs (up to £2,000 per year for each child, and up to £4,000 if the child is disabled).
  • Parents who get tax-free childcare will set up an online childcare account for their child/children. For every £8 they pay into this account, the government will pay in £2 to use to pay their provider.
  • Parents can get Tax-Free Childcare at the same time as 30 hours free childcare if they’re eligible for both.

Eligibility depends on:

  • Working status
  • Income (and partner’s income, where applicable)
  • The child’s age and circumstances
  • Immigration status
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