Tax-Free Childcare is a new government scheme to help parents with the cost of childcare; allowing parents to work, or work more, if they want to. Parents can apply for Tax-Free Childcare through the childcare service – a new online application
To be eligible, parents must be in work (including self-employment) and each earning at least £120 per week and not more than £100,000 per year.
HMRC have created the Childcare Choices website to help parents find out about what government support with the cost of childcare they may be entitled to.
The website includes a link to an easy-to-use childcare calculator where parents can enter details about their personal circumstances to see what government support is best for them
Once parents have opened their account, for every £8 that families pay in, the government will pay in £2, up to a maximum of £2,000 per child per year (or £4,000 for disabled children). This can then be spent on regulated childcare.
The Childcare Choices website also includes a page for childcare providers.