Tax Free Childcare and Childcare Vouchers

Childcare vouchers will cease from the 5th October 2018 and thereafter the Tax-Free Childcare scheme will take over.

You can get up to £500 every 3 months (£2,000 a year) for each of your children to help with the costs of childcare.

If you get Tax-Free Childcare, the government will pay £2 for every £8 you pay your childcare provider via an online account. https://www.gov.uk/help-with-childcare-costs/tax-free-childcare

You can get Tax-Free Childcare if you and your partner (if applicable) are -

  • in employment or getting parental leave, sick leave or annual leave

  • each earning at least the National Minimum Wage or Living Wage for 16 hours a week - this is £131.36 if you’re 25 or over​

This earnings limit does not apply if you’re self-employed and started your business less than 12 months ago.

Your child must be 11 or under and usually live with you. They stop being eligible on 1 September after their 11th birthday.

Adopted children are eligible, but foster children are not.

If your child is disabled you may get up to £4,000 a year until they’re 17. They’re eligible for this if they -

  • get Disability Living Allowance, Personal Independence Payment or Armed Forces Independence Payment

  • are registered as blind or severely sight-impaired

You’re not eligible if either you or your partner has a taxable income over £100,000.

Your childcare provider must be signed up to the scheme before you can pay them and benefit from Tax-Free Childcare.

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