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Tax-Free Childcare

Tax-Free Childcare is designed to help working parents with their childcare costs and can be used alongside 30-hours free childcare.

Tax-Free Childcare

This scheme requires parents to open an online bank account to pay registered childcare providers directly. For every £8 parents pay into the account, the government will add £2. (Parents can receive up to £2,000 in government support per child, per year, or £4,000 for disabled children). The money can be spent on the following childcare options:

  • Pre schools
  • Registered childminders
  • Day nurseries
  • School based care (that is paid for, such as after-school clubs)

A step-by-step guide giving details on how to apply for tax free childcare is available on the government website along with 10 things parents should know.

How do Childcare Providers receive payments from parents who use Tax-Free Childcare?

Approved or registered childcare providers can sign up to get a childcare provider account. This allows them to set up their bank account details and receive payments from parents who use Tax-Free Childcare. Childcare Providers can create accounts and find out more information on the website.

Childcare Service Compensation

If you've been unable to access Tax-Free Childcare or 30-hours free childcare due to technical issues, you can check if you qualify for a top-up refund or compensation. The HMRC guidance and forms are available on the Childcare Service Compensation page on the website.