All you need to know about Tax-Free Childcare
In this video you can find out all you need to know about tax free childcare, including how much you can pay in, how much the government will top up your account, where you can use it and how to apply.
What is Tax-Free Childcare
Tax-Free Childcare is a government scheme to help towards the cost of childcare.
The scheme works by adding a 20p top-up to every 80p you pay into a Tax-Free Childcare account. Eligible parents paying into a Tax-Free Childcare account can get upto £2,000 per year (£4,000 if the child is disabled).
The government top-ups are added to each Childcare account automatically up to a maximum of £2,000.
What can you use Tax-Free Childcare for?
All our nurseries accept Tax-Free Childcare accounts as a payment method.
As long as the provider you are using is registered with the scheme, you can use your Tax-Free Childcare account to help pay for it. There are a number of childcare options that a provider can register for:
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Breakfast and after school clubs
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Nurseries
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Pre-Schools
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Childminders
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Playgroups
Your Co-op Little Pioneers are registered and accept Tax-Free Childcare as a payment method.
Eligibility Criteria
Tax-Free Childcare is available to working parents.
To be eligible for a Tax-Free Childcare account you and your partner (if you have one) must be earning at least the equivalent of 16 hours a week at the national minimum wage or under £100,000 per year. If one or both parents has an adjusted net income of over £100,000 you would not be eligible for Tax-Free Childcare.
There are some circumstances where parents and partners would be eligible if they are not working:
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Sick leave
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Annual leave
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Shared parental, maternity, paternity, or adoption leave and already have a Tax-Free Childcare account for another child
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A parent or partner is in work and the other isn't able to work and is in receipt of certain benefits, such as incapacity benefit, carers allowance, or severe disability allowance.
How to apply and how it works
Applying for a Tax-Free Childcare account is simple.
To get set up you need to visit the Governments Tax-Free Childcare site - applying should take no more than 20 minutes. You will need to decide who's name the account will be set up in, either yours or your partners (both of you will be able to use it, but only one person can set it up). You'll need yours and your partners details as well as:
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National Insurance Number
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UTR (Unique Taxpayer Reference) but only if you're self employed
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The UK Birth Certificate reference number of any children you're applying for
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The date you started or are due to start work.
Once your account is set up you'll be able to add funds by setting up a standing order or making payments from your bank account. It isn't possible to add funds by using a Direct Debit at this time. Payments into the account can be made by parents, partners, famly, and family friends.
Any top-ups you are eligible for will be added automatically by the government, and you will be able to use top-up funds once they are showing as available in your account.
It's really important to remember that you need to reconfirm you are eligible for a Tax-Free Childcare account every three months (four times a year) - you'll be reminded of these deadlines and the process is simple, but if eligibility isn't reconfirmed then you could miss out on your top-ups.