Signposting - Childcare - Tax-Free Child Care 2017

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Section: Signposting

Subsection: Signposting - Childcare

Tax-Free Child Care 2017

Tax-Free Childcare is a new UK-wide government scheme to help working parents with the cost of childcare. It will be rolled out to parents from early 2017.


Eligible parents, (both parents will have to be in work, and each expecting to earn at least £115 a week – and not more than £100,000 each year) will be able to open an online childcare account. The money held in these accounts can only be used by parents to pay for registered childcare (Preschools, childminders, day nurseries and school based care that is paid for, such as after-school clubs)

For every £8 parents pay in to their childcare account, the government will pay in an additional £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). Parents will then be able to use the funds to pay for registered childcare - but only if their childcare provider has signed up to the scheme.

Childcare providers will have been sent a letter between September and October last year inviting them to sign up to Tax-Free Childcare. The letter contains a code, which they’ll need alongside their ten-digit Unique Tax Reference (UTR) number to sign-up. (If they’ve lost the letter, they need to get a new one sent by calling 0300 123 4097).

Further details on the launch of Tax-Free Childcare will be issued in due course. In the meantime, please [click here] for more information on the current guidance being offered to providers and [here] for the top things parents should know.