tax free childcare

Tax-Free Childcare for UK parents

In this article our payroll experts provide a brief overview of the UK’s Tax-Free Childcare scheme and discuss how you can avail of the benefit, how much it is worth and who is eligible to receive it.


April 21st 2017 saw the introduction of the UK’s Tax-Free Childcare scheme which provides support with the cost of childcare to over 2,000,000 households. Continue reading for details on the scheme.


Who can benefit from Tax-Free Childcare?

The Tax-Free Childcare scheme is available to parents in the UK that have children under 4 years of age and/or disabled children under 17.


What is the benefit?

For every £8 families pay in, the UK Government will make a top-up payment of 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.

Working parents are able to apply to open an online childcare account snf they will be able to pay their childcare provider from that account provided the childcare provider is signed up to Tax-Free Childcare. You can check if your childcare provider is already signed up for Tax-Free Childcare scheme by clicking here.


Am I eligible?

To check if you’re eligible click here to visit the Childcare Choices website. Once on the website:

  • Select the appropriate location from the “You are living in” section
  • Select the appropriate option from the “You are” dropdown field
  • Click the “Yes” or “No” option to answer the question “Do you live with a partner?”
    • If yes then select the appropriate option under the “My partner is” field
  • Then enter your childs details (first name, month & year of birth and whther your child is disabled?)
  • Click on the “Show what options may be available” button to see what

Once complete the options that may be available to you will then be displayed below the form.


How to Apply?

Read the instructions and follow the application link on the webpage here.


For more on UK payroll read:

HMRC PAYE bill not as expected

Gender Pay Gap Reporting – What UK Employers need to know.

Gender Pay Gap lessons learned from the UK experience


Be the best employer that you can be with Paycheck Plus

Here at Paycheck Plus we enable our clients to become the best employers that they can be. Our friendly payroll specialists can explain the factors affecting net take home pay and how employees can use their personal circumstances to minimise their tax liability.

To contact our Irish payroll firm simply request a call-back or call +353 (0) 1 905 9400

To contact our UK payroll agency call +44 (0) 161 464 8720